Refinance Calculator – Savings & Break-Even

The new payment follows the annuity formula M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), with r the new monthly rate (annual ÷ 12) and n the remaining months. Monthly savings = current payment − new payment; the break-even point = closing costs ÷ monthly savings. Example: $200,000 with 30 years left refinanced from 7% to 5.5% cuts the payment from about $1,331 to $1,136 — saving $195 a month, so $4,000 of closing costs break even in about 21 months.

1. 1

   Enter balance and current payment

   The remaining loan balance and what you pay now.

2. 2

   Enter the new rate, term and costs

   New annual rate, remaining years and closing costs.

3. 3

   Read the results

   New payment, monthly savings, interest saved and break-even.