Loan Refinance Decision Calculator
Compare current loan vs refinance with new rate. Include closing costs, see break-even months, and view cumulative cost chart. Refinance calculator with graph.
Stay with current loan
Monthly payment: $2,246.63
Remaining interest: $327,029
Payoff: 288 months
Refinance
Monthly payment: $2,099.13
Total interest: $284,549
Closing cost: $6,500
Payoff: 288 months
Break-even & net savings
Monthly payment savings
$147.50
Break-even (months)
~45 months
Net savings (interest − closing)
$35,979
Cumulative cost over time
Stay: total paid by month. Refinance: closing cost + payments. Where they cross = break-even.
Why this is a refinance decision tool, not just a loan calculator
A basic loan calculator tells you the new monthly payment. This page answers: After closing costs, how many months until you break even? and What is your net savings over the life of the loan?
The chart shows cumulative cash outlay for staying vs refinancing. Where the lines cross is your break-even point. If you sell or refinance again before that month, the refi may not have paid off.
Decision matrix
| Question | Metric to watch |
|---|---|
| When do I recover closing cost? | Break-even months |
| Is refi worth it long-term? | Net savings after closing |
| Monthly cash flow change? | Monthly payment difference |
Practical flow
Step 1
Enter current balance, rate, and remaining term.
Step 2
Enter new rate, new term, and total closing cost.
Step 3
Check break-even and net savings; use chart to judge timing risk.
What each input really means
These fields assume you already have a loan and are considering a refinance on top of it.
- Current balance (USD)
- How much principal is left on your existing loan today. This is the amount you would pay off with the refinance.
- Current APR (%)
- The interest rate on your existing loan. Use the annual percentage rate shown on your statement.
- Remaining term (years)
- How many years are left until your current loan would be fully paid off if you keep making payments as scheduled.
- New APR (%)
- The rate offered by the new lender. This is what you are shopping for when you compare refinance quotes.
- New term (years)
- The full length of the new loan. It can match your remaining term, be shorter (to pay off faster), or longer (to lower the monthly payment).
- Closing cost (USD)
- One-time fees to set up the refinance: origination, appraisal, title, recording, and any points. Enter the total cost you effectively pay for this new loan.
FAQ: Refinance decision
What is break-even in refinancing?
Break-even is the number of months until your monthly payment savings equal the closing cost. Before that point, the refi has not yet “paid for itself”; after that, you are ahead.
Should I refinance if I might move soon?
If you expect to sell or refinance again before the break-even month, the closing cost may not be recovered. Use the chart to see how long you need to keep the new loan to come out ahead.
What counts as closing cost?
Include all fees: origination, appraisal, title, recording, and any points. Enter the total out-of-pocket (or rolled-into-loan amount you want to treat as cost) so the break-even and net savings are accurate.