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Refinance Calculator with Break Even Point

A refinance calculator compares your current loan to a new rate and tells you the monthly saving, how long it takes to earn back the closing costs (the break even point), and the lifetime interest saved. Use it for a mortgage or any amortizing loan. Everything runs in your browser, with no signup.

Updated for 2026

Your refinance

Drag a slider or type a value. Results update instantly.
$
% APR
years
% APR
years
$
Monthly savings
$0
Current payment
$0
New payment
$0
Lifetime interest saved
$0
Net of closing costs
$0

How refinance savings are calculated

Find each monthly payment with the amortizing loan formula, then compare:

Monthly saving = Current payment − New payment
Break even (months) = Closing costs / Monthly saving

The lifetime interest saved is the total interest on the current loan minus the total interest on the new loan. Subtract the closing costs to get the net saving. A new term that is longer than what is left on the current loan can lower the monthly payment yet still raise lifetime interest, so watch both figures.

Worked example (Stand: 2026)
  • Balance$250,000
  • Current: 7 percent, 25 years$1,767 / mo
  • New: 5.5 percent, 25 years$1,535 / mo
  • Monthly saving$232
  • Closing costs$4,000
  • Break even17 months
  • Lifetime interest saved, net$65,519

Frequently asked questions

What is the break even point?
It is how long the monthly savings take to repay the closing costs. Divide closing costs by the monthly saving. If you keep the loan longer than the break even, refinancing usually pays off.
How much does refinancing save?
A lower rate cuts the monthly payment and the total interest. The net lifetime saving is the interest you avoid minus the closing costs. The tool shows both the monthly and the net lifetime figure.
Does a longer new term really save money?
A longer term lowers the monthly payment but can raise total interest, even at a lower rate, because you pay for more years. Watch the lifetime interest figure, not just the monthly payment.
Does this calculator store my numbers?
No. Everything is calculated in your browser. Nothing you enter is sent to a server or saved.

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