Calculators
Refinance Break-Even Calculator
Results are estimates only. See the disclosure below the results.
Refinance comparison
Compare an existing loan payment with a new loan payment.
Monthly change
-$255
Current: $2,139/mo
New: $1,884/mo
Estimated APR on the new loan
6.290% Estimated APR
Estimated APR is provided for informational purposes only. Actual APR may vary based on lender terms, fees, credit profile, and other factors.
Total payments on the new loan: $678,274
Amount financed: $304,705 · New loan term: 30 years
Break-even: 24 months
Estimated APR on the new loan
6.290%
Interest rate: 6.250%
Prepaid finance charges: $1,295.00
Amount financed: $304,705.00
The Annual Percentage Rate (APR) shown is an illustrative estimate for educational purposes only. It is calculated from the figures you enter and assumes the loan is held to full term with no changes. It is not a quote, offer, commitment to lend, or an advertisement of specific credit terms. Actual APR depends on the final loan amount, interest rate, term, and the finance charges that apply to your transaction, and will be disclosed on your Loan Estimate and Closing Disclosure. Third-party costs that are not finance charges (such as appraisal, title services you shop for, recording fees, taxes, and homeowners insurance) are excluded from APR. Rates, fees, and terms are subject to change and to credit approval; not all applicants will qualify.
How This Calculator Works
Estimating Refinance Savings and Break-Even
This calculator compares your current payment with a potential new loan and estimates how long it may take for monthly savings to cover the cost of refinancing.
What the inputs mean
Enter your current balance, rate, and remaining term, then the new rate, term, and estimated closing costs. The difference in principal and interest is the estimated monthly change.
How to read the results
Break-even is the closing cost divided by the monthly savings. If you expect to keep the loan longer than that, the refinance may make financial sense. Extending the term can lower the payment while increasing total interest, so look at both. Estimated APR folds lender fees, discount points, and other prepaid finance charges into a single yearly cost figure, so it is usually a little higher than the note rate. Use it to compare scenarios, not as a quoted rate.