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Refinance Calculator

Compare refinancing payments, interest and simple break-even, or evaluate payments and remaining debt over the same holding period.

Currency: USD

Enter all amounts in USD. Changing currency keeps numbers unchanged; no exchange rate is applied.

Your inputs

Calculations run in your browser. No account needed.

EXAMPLE RESULTCalculated locally
Current monthly payment
$1,766.95
New monthly payment
$1,535.22
Monthly payment reduction
$231.73
Payment-based break-even
22 months
Old remaining interest
$280,084.40
New interest plus costs
$215,565.62
Clear inputs. Transparent methods.
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Calculate with your inputs to save a result or compare scenarios.

How it works

A useful distinction

Cash-out proceeds are not refinancing savings

First run the horizon comparison with cash-out set to zero to isolate the refinancing change. Then add your desired withdrawal; receiving cash today also creates debt, so the proceeds alone do not measure a financial gain.

Comparing refinancing over your own time horizon

If upfront refinancing costs are 3,000 and the monthly payment falls by 150, simple payment break-even is 20 months. That comparison only recovers the upfront cost through smaller payments; it does not account for a different remaining loan balance. A longer new term can lower the payment while leaving more debt at your planned sale date. Use the common-horizon mode to compare payments, fees, cash-out proceeds, and both ending balances over the same number of months.

Refinance comparison: formula and assumptions

Simple break-even months = upfront costs / monthly payment reduction.

Break-even based on payment savings does not account for investing, taxes, or differences in payoff dates.

Refinance over a common horizon: formula and assumptions

Advantage = upfront net cash + old payments − new payments + old ending balance − new ending balance.

The same horizon compares payments and remaining debt together. Cash-out proceeds and financed fees are counted once, preventing a misleading payment-only comparison.

Worked example

Reference example currency: USD. These fixed examples do not change with your calculator preferences.

Using the Refinance comparison example:

Inputs
Loan amount ($)
250000
Current annual rate (%)
7
Remaining term (years)
25
New annual rate (%)
5.5
New loan term (years)
25
Refinancing costs ($)
5000
Method

Simple break-even months = upfront costs / monthly payment reduction.

Result

Example result

Current monthly payment: $1,766.95

New monthly payment: $1,535.22

Monthly payment reduction: $231.73

Payment-based break-even: 22 months

Old remaining interest: $280,084.40

New interest plus costs: $215,565.62

These are illustrative inputs. Change the values to explore a different scenario.

Formula references

References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.

Common questions

What does simple refinance break-even measure?

It divides upfront costs by the monthly payment reduction. That payment-only measure does not account for different balances at a later date.

Why compare remaining balances over the same horizon?

A lower payment can leave more debt outstanding. The horizon mode compares payment differences, upfront net cash and both ending balances together.

Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.