Standard rate-drop refi
Input: $220,000 balance, 7.25% rate, $1,632/mo current vs 5.75% / 30 yr / $4,500 closing
Output: New $/mo: $1,284. Savings: $348/mo. Break-even: 13 mo. Stay 7 yr → ~$24K net savings.
UtilityKit
500+ fast, free tools. Most run in your browser only; Image & PDF tools upload files to the backend when you run them.
Refinance Calculator
Compare your current loan to a refinance offer. See monthly savings, break-even, and total interest delta.
About Refinance Calculator
The Refinance Calculator answers the one question that matters: will refinancing actually save me money? It takes your current loan (balance, rate, monthly payment) and compares it to a refinance offer (new rate, new term, closing costs), then computes three decision points: monthly payment difference, break-even month (when accumulated savings cover closing costs), and net savings over the time you'll actually keep the property or loan. It supports both rolling closing costs into the loan and paying them upfront, and accounts for the residual balance left at your sell-by date — a refinance can extend your payoff and silently increase total cost even when the monthly drops. A side-by-side cumulative-cost chart shows the crossover point visually.
Why use Refinance Calculator
- Computes break-even month — the single most important refinance metric most calculators omit.
- Compares net cost over your actual stay horizon, not just the lifetime of the new loan.
- Handles both upfront and rolled-in closing costs accurately.
- Accounts for residual balance — a longer new term can make a 'lower' payment cost more over time.
- Shows side-by-side cumulative cost chart so you see exactly when the refi pays off.
- Browser-only privacy: your loan balance, rate, and personal financial data never leave your device.
How to use Refinance Calculator
- Enter your current loan balance, rate, and the monthly principal-and-interest payment shown on your statement (exclude taxes/escrow).
- Enter the refinance offer: new APR, new term, and total closing costs (origination, appraisal, title, recording).
- Pick whether to pay closing costs upfront in cash or roll them into the loan balance.
- Enter realistically how many years you'll stay in the home or keep this loan.
- Check the break-even month — if you'll move before that, the refinance loses money.
- Compare the net savings figure to confirm the refinance is favorable over your actual stay horizon.
When to use Refinance Calculator
- Mortgage rates have dropped 0.75% or more from your current rate.
- Your credit score has improved significantly since your original loan, qualifying you for a better rate.
- You want to switch from a 30-year to 15-year mortgage and lock in long-term savings.
- You want to drop PMI by refinancing once your home equity reaches 20%.
- You're considering a cash-out refinance and need to compare net cost vs. a HELOC or home equity loan.
- You're refinancing student loans or auto loans, not just mortgages — same math applies.
Examples
Closing costs rolled in
Input: Same as above but rolled $4,500 into loan balance
Output: New $/mo: $1,310. Savings: $322/mo. Break-even: 0 (no upfront). 7 yr → ~$23K net savings.
Refi-to-extend trap
Input: $220K balance, 6.5% / 22 yrs left, $1,560/mo vs 6.0% / 30 yr / $4,500 closing
Output: New $/mo: $1,319 (savings $241). Break-even 19 mo. But residual at 7 yr is $19K higher → net loss ~$10K.
Tips
- Break-even month is the key number. If you'll sell or move before that month, the refinance loses you money even with a lower monthly payment.
- Don't refinance to extend the term unless you specifically need the cash flow — restarting a 30-year clock 5 years in costs tens of thousands in extra interest.
- Closing costs are negotiable. Get loan estimates from at least 3 lenders and ask each to match the lowest fees.
- A 'no closing cost' refi just bakes the costs into a higher rate. Compare apples-to-apples by computing total cost over your stay horizon.
- Avoid refinancing in the last few years of a loan term — you've already paid most of the interest, so a refi mostly resets the interest clock.
Frequently Asked Questions
How accurate is this calculator?▾
The amortization math matches what your lender uses to the penny. The accuracy of the recommendation depends on your inputs — most importantly the closing costs and how long you'll actually stay. Underestimate either, and the calculator's recommendation flips. Use Loan Estimate documents (from competing lenders) for closing cost numbers.
Is my data shared anywhere?▾
No. All calculations run locally in your browser. Your loan balance, rate, payment, closing costs, and stay horizon never leave your device. No tracking pixels on inputs, no third-party scripts handling your financial data.
What's the break-even month and why does it matter?▾
Break-even is the month when your accumulated monthly savings exactly cover the upfront closing costs. If you sell or move before that month, the refinance lost you money even though the monthly payment was lower. It's the single most important number in any refi decision.
Should I roll closing costs into the loan or pay upfront?▾
Pay upfront if you have the cash and the savings will cover them within 18–24 months. Roll them in if cash is tight or break-even is short. Rolling them in costs more total interest but keeps cash in your pocket today.
Is a 'no closing cost' refinance really free?▾
No. The lender pays your closing costs but charges a higher rate (typically 0.25–0.5% more). You're paying for them through the rate over the life of the loan. Compute the total cost over your stay horizon — sometimes the higher-rate, no-cost option wins, sometimes it loses.
How does this compare to bank refinance calculators?▾
Bank calculators show the new payment but rarely surface break-even or net cost over a realistic stay horizon. Banks have an incentive to make refis look favorable. This tool computes the same math the bank uses but exposes the full picture, including how a longer new term silently increases total cost.
Does this work for student loan refinancing?▾
Yes — the math is identical for any fixed-rate amortizing loan. Refinancing federal student loans into private loans is one-way and you lose income-driven repayment and forgiveness programs, so weigh those non-financial factors separately.
What rate drop justifies a refinance?▾
Old rule of thumb was 1% for mortgages, but it depends on closing costs and stay horizon. With low closing costs and a 5+ year stay, 0.5–0.75% can pay off. With high closing costs or short stay, you may need 1–1.5% drop. Always run the actual numbers — rules of thumb mislead.
Explore the category
Glossary
- Break-even point
- The number of months it takes for accumulated monthly savings to equal the closing cost outlay. Selling before break-even means the refi was a loss.
- Closing costs
- Fees due at refinance: origination (0.5–1% of loan), appraisal ($400–$800), title insurance, recording fees, and lender's title insurance. Typically 2–5% of the loan.
- No closing cost refinance
- Lender pays your closing costs in exchange for a higher rate (typically 0.25–0.5% above market). Math out the total cost over your stay horizon — sometimes worse, sometimes better.
- Cash-out refinance
- Borrow more than you owe and pocket the difference. Useful for home improvement or debt consolidation, but increases your loan balance and risks higher PMI.
- Rate-and-term refinance
- Standard refi that changes only the rate, term, or both — no cash taken out. Has lower closing costs than cash-out refis.
- Residual balance
- The amount still owed when you sell or pay off early. A longer new term means a higher residual at the sell date, which can wipe out monthly savings.