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🔄 Refinance Calculator

Determine whether refinancing your loan makes financial sense. Enter your current loan details and the proposed new loan terms to see your monthly savings, break-even point, and total interest saved over the life of the loan.

Current Loan

New Loan

Refinance Formulas

Monthly Payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Monthly Savings = Current Payment − New Payment
Break-even Months = Closing Costs ÷ Monthly Savings

Example Calculation

Current loan: $220,000 balance, 7.25%, 300 months remaining. New loan: 6.25%, 360 months, $4,500 closing costs.

Current payment = $1,601/mo
New payment = $1,355/mo
Monthly savings = $1,601 − $1,355 = $246/mo
Break-even = $4,500 ÷ $246 = ~18 months
'How does the break-even calculation work?', 'answer' => 'The break-even point is how many months it takes for your cumulative monthly savings to equal the upfront closing costs. If you plan to keep the loan longer than the break-even, refinancing saves money overall. If you move or pay off early, you may not recoup the costs.'], ['question' => 'Does refinancing hurt my credit score?', 'answer' => 'Refinancing causes a hard inquiry on your credit report, which may temporarily lower your score by a few points. Multiple mortgage inquiries within a 14–45 day window are typically treated as a single inquiry by credit bureaus, so shopping for rates won\'t cause multiple dings.'], ]" />

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