Finance & Money
Refinance Calculator - Estimate Savings
Compare your current loan with a refinance option and estimate savings.
Formulas and edge cases are reviewed against authoritative references before publication. For methodology, editorial standards, or corrections, use the links below.
Frequently asked questions
What are closing costs?
Closing costs include lender fees, appraisal, and other charges to refinance.
What does break-even mean?
Break-even is the time needed for monthly savings to cover closing costs.
Does a longer term lower payments?
Yes, but it can increase total interest paid over the life of the loan.
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About this tool
Inputs
- Current balance
- Current rate
- Remaining term
- New rate
- New term
- Closing costs
Results
- Current payment
- New payment
- Monthly savings
- Break-even
- Total savings
You do not need a spreadsheet to compare your current loan with a refinance option and estimate savings. This Refinance Calculator gives you the answer in seconds. Small changes in interest rates or time horizons can dramatically shift outcomes. Type in current balance, current rate, remaining term, new rate, new term and closing costs. The computation runs immediately, giving you current payment, new payment, monthly savings and other key metrics.
People frequently need to compare your current loan with a refinance option and estimate savings but lack a quick way to do it — this tool fills that gap. Break-even is the time needed for monthly savings to cover closing costs. The rule of 72 offers a quick estimate: divide 72 by the annual rate to approximate doubling time. Factor in inflation when projecting long-term growth; a nominal rate of 7% with 3% inflation yields roughly 4% real growth. Whether saving for retirement or evaluating a loan, running the numbers removes guesswork. Compare multiple scenarios by saving or noting each result before changing inputs.