Refinance Calculator

Calculate potential savings from refinancing loans with our easy-to-use tool.

Current Loan

Original Amount of Current Loan

Loan Term

years

Interest Rate

Time Remaining

years

months

New Loan

New Loan Term

years

months

Interest Rate

Points

Cash Out and Cost

Cash Out Amount

Costs

There was an error with your calculation.

Refinance
Savings for the new loan	$278.00/month
lifetime savings for the new loan	$83,400.00
upfront cost	$6,583.26
	CURRENT LOAN	NEW LOAN	DIFFERENCE
Principal/Loan Amount	$279,163.18	$273,579.92	$-5,583.26
Length	300 months	300 months	0 months
Interest Rate	6%	4.5%	1.5%
Monthly Pay	$1,798.65	$1,520.65	$-278.00
Total Payments	$539,595.00	$456,195.00	$-83,400.00
Total Interest	$260,431.82	$182,615.08	$-77,816.74
Points Equivalent To		$5,583.26
Cost + Points (Upfront)		$6,583.26
Cash Out		NA
Take Home Amount After Cost/Point		NA
Time to Recover Cost/Point		23.68 months

What is an Online Refinance Calculator?

An Online Refinance Calculator is a tool that helps homeowners or borrowers determine whether refinancing their loan, typically a mortgage, is financially beneficial. It calculates potential savings or costs by comparing the terms of the current loan with the proposed refinanced loan, factoring in elements like interest rates, loan terms, and closing costs.

How to Use an Online Refinance Calculator?

Enter Current Loan Details:
- Input the remaining balance, interest rate, and remaining term of your existing loan.
Provide New Loan Information:
- Add details of the refinanced loan, including the new interest rate, term length, and any associated fees or closing costs.
Include Additional Costs (if applicable):
- Enter details for other expenses like private mortgage insurance (PMI) or property taxes if relevant.
Analyze Monthly Savings:
- Review the reduction in your monthly payment based on the new loan terms.
Calculate Total Savings:
- Assess the long-term savings and determine how many months it will take to recoup refinancing costs (breakeven point).

Frequently Asked Questions-

What is refinancing, and when should I consider it?
- Refinancing is replacing your current loan with a new one, typically to get a lower interest rate, reduce monthly payments, or shorten the loan term. It's worth considering when market rates are significantly lower than your current rate.
How does the refinance calculator account for closing costs?
- The calculator incorporates closing costs into the total savings analysis and calculates how long it takes to recover these expenses (breakeven period).
Can I use this calculator for loans other than mortgages?
- Yes, many refinance calculators can also be used for auto loans, student loans, or personal loans, though some are specifically designed for mortgages.
What is the breakeven point, and why is it important?
- The breakeven point is the time it takes for savings from the lower monthly payment to exceed the upfront refinancing costs. It helps determine if refinancing is financially beneficial.
Does the calculator consider prepayment penalties on my current loan?
- Some calculators allow you to input prepayment penalties, which may affect the overall savings and breakeven analysis. Always check if this feature is included.