Refinance Comparison Tool
Compare current loan vs new refinance terms and monthly savings.
Refinancing can lower monthly payments or total interest, but closing costs matter. This calculator compares your current loan to a new one—monthly payment, total interest, and break-even (months until savings cover closing costs). Only refinance if you plan to keep the loan past break-even.
Current Loan
New Loan
Comparison
Current payment: $970
New payment: $888
Monthly savings: $82
Break-even (months): 24
Insights
Formula
PMT = P * [r(1+r)^n] / [(1+r)^n - 1] Break-even = Closing costs / Monthly savings
Input Definitions
What does each input mean?
- Remaining balance
- Current payoff amount on your existing loan.
- APR (current)
- Your current loan's annual percentage rate.
- Remaining months
- Months left until current loan is paid off.
- New APR
- Interest rate offered on the refinance.
- New term
- Length of the new loan in months.
- Closing costs
- Fees to close the refinance. Break-even = costs ÷ monthly savings.
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Does Refinancing Actually Save You Money?
Refinancing can lower your monthly payment, reduce your interest rate, or shorten your loan term — but it also resets your amortization, and the closing costs need to be recovered before you start saving. This calculator shows you the break-even point (how many months until accumulated savings exceed upfront costs), total interest under each scenario, and whether refinancing makes financial sense given how long you plan to stay.
It’s essential to run before committing to a refinance, especially if you’re within a few years of your current loan maturity or planning to sell within the next three to five years. The monthly payment reduction that looks attractive can sometimes cost more in total interest than staying put — and this tool makes that clear before you sign.