How it works
Determine if refinancing your mortgage or loan makes financial sense.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?loanAmount=Remaining BalanceNumber · Optional · Default: 200,000
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?currentRate=Current Interest RateNumber · Optional · Default: 6.5
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?currentTerm=Original Term (Yrs)Number · Optional · Default: 30
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?yearsPaid=Years PaidNumber · Optional · Default: 5
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?newRate=New Interest RateNumber · Optional · Default: 5
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?newTerm=New Term (Years)Number · Optional · Default: 25
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?closingCosts=Closing CostsNumber · Optional · Default: 4,000
Outputs
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resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Analyze the benefits of refinancing your loan
Description
The Refinance Calculator helps you decide if replacing an existing loan with a new one makes financial sense. It factors in your current loan’s remaining balance, new interest rates, and the required closing costs to reveal your “Break-Even Point”—the moment where your savings finally outweigh the costs of the refi.
Inputs
- Current Loan Details:
- Remaining Balance: Your current payoff amount ($).
- Current Interest Rate: The rate on your existing loan (%).
- Original Term / Years Paid: Used to determine how much of your original schedule is left.
- New Loan Details:
- New Interest Rate: The rate offered for the replacement loan (%).
- New Term (Years): The length of the new loan.
- Closing Costs: The upfront fees, points, and administrative costs required to refinance ($).
Outputs
- Refinance Recommendation: A summary advising if the refinance is beneficial based on total lifetime costs.
- Monthly Savings: Your “cash flow” improvement (or increase).
- Lifetime Savings: The total dollar amount saved over the new loan’s term, after accounting for closing costs.
- Break-Even Point: The number of months it will take for your monthly savings to cover the upfront closing costs.
Chart
- N/A: This tool focuses on comparative analysis and the break-even timeline.
“Good to Know”
- Refinancing into a lower monthly payment isn’t always good. If you “restart” a 30-year mortgage after already paying for 10 years, you might pay more in total interest even with a lower rate.
- The “Break-Even” point is the most important number. If you plan to sell the house or pay off the loan before the break-even month, the refinance is likely not worth it.
- Closing costs can often be “rolled into” the loan, but this calculator assumes they are paid or accounted for to show a true break-even analysis.
Examples
Example 1: Successful Rate Drop
- Input:
- Balance: $200k, Old Rate: 6.5%, New Rate: 5%
- Closing: $4,000
- Output:
- Monthly Savings: ~$185
- Break-Even: ~22 Months
- Is Beneficial: YES
Example 2: Small Drop, High Costs
- Input:
- New Rate: 6.25% (vs 6.5%)
- Closing: $5,000
- Output:
- Break-even might take 10+ years, making it only worth it if you stay in the home long-term.
Example 3: Extending the Term
- Input:
- Balance: $150k, New Term: 30 Years (after already 10 years in)
- Output:
- May show monthly savings but Negative lifetime savings due to the extended interest schedule.