Refinance Calculator
Compare current and new loan payments, interest saved, and months to recover closing costs.
Guide
What does a refinance comparison show?
A refinance comparison estimates the new payment against the current payment on the remaining balance, then shows interest differences and how many months of savings are needed to recover closing costs.
Formula
Current and new payments use the standard amortizing payment formula on the shared remaining balance. Monthly savings = Current payment − New payment. Break-even months = Closing costs ÷ Monthly savings when savings are positive.
Worked example
A 1,200 balance at 0% for one year has a 100 monthly payment. Refinancing to the same 0% one-year terms with no closing costs leaves monthly savings at 0.
Assumptions and limitations
The Calculator assumes the full current balance is refinanced into a new fixed-rate amortizing loan. It does not model cash-out amounts, changing escrow, prepayment penalties beyond entered closing costs, or credit qualification.
Common questions
What if the new payment is not lower?
Monthly savings are zero or negative and break-even is shown as N/A. Are closing costs financed? No. Closing costs are treated as an upfront cash cost for break-even only.
Methodology
The Calculator reuses shared amortizing payment helpers, subtracts closing costs from interest savings for the after-cost figure, and rounds currency values only for display.