Refinance Calculator
Use this when you have a firm offer—or a realistic rate range—and want to see how a new loan reshapes payment, timeline, and interest paid versus staying put.
Quick answer
Set current loan snapshot and proposed loan terms. Compare monthly P&I and cumulative interest, then weigh against closing costs.
For a related estimate, see 20 Percent Down Calculator.
Explore further: Biweekly Mortgage Calculator · Closing Cost Calculator
How to use this calculator
- Enter current loan: Balance, rate, payment, months remaining.
- Enter proposed loan: New rate, term, and financed closing costs if rolling in.
- Decide what “win” means: Lower payment, fewer years of interest, or equity faster—pick the metric that matches your goal.
What moves the payment
Monthly payment on a fixed-rate amortizing loan is driven by principal, APR, and term. Extra principal reduces balance faster; biweekly schedules effectively add one extra payment per year in many setups. Refinance math adds closing costs and resets amortization—break-even is months of savings versus upfront cost.
Explore further: Debt To Income Calculator · Down Payment Calculator
Real-world example
- Example: break-even framing: If you save $140/mo and pay $3,800 to close, you need ~27 months to recover costs before “net savings” accrue (illustrative).
Explore further: Home Affordability With Taxes · Home Loan Calculator
What this means
Years 1–10 on a 30-year loan are interest-heavy: most of your payment is interest, so rate cuts move the needle fast. Resetting term for a lower payment can still raise lifetime interest—compare total interest on the same payoff horizon, not just the first payment.
FAQ
When is refinancing a bad idea?
If you will move before break-even, or if the new loan restarts amortization and raises lifetime interest without a clear goal.
Is this a loan commitment?
No. Outputs are educational estimates. Final payments, APR, and fees come from your lender’s disclosures.
Why does my amortization schedule differ slightly?
Rounding, day-count conventions, and first-payment timing shift pennies. Use the schedule for directionally correct totals.