# Refinance Calculator

URL: https://speedycalculator.com/calculators/finance/refinance/
Last updated: 2026-10-25

> The refinance calculator compares your current loan – mortgage, auto or personal – with a refinance offer, showing the new payment, monthly savings, the change in total interest, the costs and the break-even point.

## Inputs

- Current loan balance
- Current interest rate (%)
- Remaining term (years, months)
- New interest rate (%)
- New loan term (years, months)
- Refinancing costs
- Costs are

## Results

- Current monthly payment
- New loan amount
- New monthly payment
- Monthly savings
- Break-even
- Remaining interest – current loan
- Total interest – new loan
- Lifetime savings (after costs)

## Formula

```
Current payment = pmt(old rate ÷ 12, remaining months, balance)
New payment = pmt(new rate ÷ 12, new term, balance + financed costs)
Break-even = refinance costs ÷ monthly savings
Lifetime savings = remaining old payments − new payments − upfront costs
```

## Explanation

Refinancing pays off when the interest saved exceeds the costs before you sell or repay. Watch out for resetting the clock – extending a loan you've paid for years can increase total interest even at a lower rate.

### How to use the Refinance Calculator

- **Current loan balance**
- **Current interest rate**
- **Remaining term**
- **New interest rate**
- **New loan term**
- **Refinancing costs**
- **Costs are**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the current balance, rate and remaining months, then the new rate, term and refinancing costs.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterCurrent loan balanceAmount in your currencyCurrent interest rateIn %Remaining termUnits: years, monthsNew interest rateIn %New loan termUnits: years, monthsRefinancing costsAmount in your currencyCosts areChoose one: Paid upfront, Added to the new loan

### What each result means

- **Current monthly payment** = pmt([Current interest rate]÷1200, [Remaining term], [Current loan balance])
- **New monthly payment** = pmt([New interest rate]÷1200, [New loan term], [New loan amount])
- **Monthly savings** = [Current monthly payment] - [New monthly payment]
- **Remaining interest – current loan** = [Current monthly payment]×[Remaining term] - [Current loan balance]
- **Total interest – new loan** = [New monthly payment]×[New loan term] - [New loan amount]

### Example values

How the main result changes when **Current loan balance** changes and everything else stays at the example values above:

Current loan balanceMonthly savings125,000118.64187,500177.96250,000237.28312,500296.6375,000355.91500,000474.55

## Worked example

Inputs — Current loan balance: $250,000; Current interest rate: 7.2 %; Remaining term: 27 years; New interest rate: 6.1 %; New loan term: 30 years; Refinancing costs: $5,000; Costs are: Paid upfront.

Results — Current monthly payment = $1,752.26; New loan amount = $250,000.00; New monthly payment = $1,514.99; **Monthly savings = $237.28**; Break-even = 21 months; Remaining interest – current loan = $317,733.21; Total interest – new loan = $295,395.31; Lifetime savings (after costs) = $17,337.90.

## FAQ

**When does refinancing make sense?**
When you'll keep the loan past the break-even point and total costs fall.

**How much does refinancing cost?**
Mortgages: 2–5% of the loan; auto and personal loans often have little or no fee.

**Should I refinance to a shorter term?**
It raises the payment but cuts interest sharply.

**What formula does the Refinance Calculator use?**
Current payment = pmt(old rate ÷ 12, remaining months, balance).


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)