How to use this refinance calculator
Enter the values requested above and select Calculate. Change any input to compare another scenario. The calculation runs locally in your browser and does not require an account.
Formula and method
Example
If refinancing saves $180 per month and costs $4,500 upfront, the simple break-even point is about 25 months.
Tips for a useful result
A lower payment does not always mean lower lifetime cost if the new term is much longer.
What this calculator is useful for
Estimate monthly savings, closing-cost break-even time and interest difference when refinancing a loan. The result is intended for quick estimates, checking arithmetic and comparing scenarios. When a result affects a contract, tax filing, medical decision, building-code requirement or other high-stakes situation, verify the result with the appropriate professional or authoritative source.
Frequently asked questions
What does the Refinance Calculator calculate?
Estimate monthly savings, closing-cost break-even time and interest difference when refinancing a loan.
How does the Refinance Calculator work?
Compare the payment on the current balance at the old rate and remaining term with the payment on a new loan at the proposed rate and term.
Is the Refinance Calculator free to use?
Yes. ERICH Calculators is free to use and does not require an account.