Tool

Refinance Calculator

Most refi calculators stop at break-even. This one shows the full picture — monthly savings, lifetime interest, term-extension risk, and the true cost of cash-out — so you can make the call honestly.

Your current loan

What you have today. Updates recalculate everything live.

Current interest rate
%
Years left on current loan
26 yr

Your new loan

The refinance you're considering.

New interest rate
%
New loan term
Verdict

You break even in 17 months and save $25,790 over the life of the loan.

Monthly payment

Current
$2,282
7.25% · 26 yr left
New
$1,888
5.85% · 30 yr
Monthly savings+$394
Break-even on $6,500 closing costs17 mo (1.4 yr)

Lifetime interestWhat most refi calculators skip

Total interest you'd pay if you keep each loan to full term.

Current loan · interest
$391,902
over 26 more years
New loan · interest + costs
$366,112
over 30 years
Lifetime savings
$25,790

The three numbers a refi calculator should give you

A lower monthly payment is satisfying, but it's not the same as saving money. Three numbers actually determine whether a refinance is a good deal: how long it takes to recoup the closing costs, how the total interest compares, and what the new term does to your timeline.

1. Break-even point

Closing costs ÷ monthly savings. If you'll stay past this date, the refi starts paying you back. If you'll move sooner, you'll likely lose money on it.

2. Lifetime interest

Total interest on the old loan vs the new one — including the closing costs you just paid. This is the real bottom line and the number most calculators skip.

3. Term effect

Refinancing a loan with 22 years left into a fresh 30-year resets the clock. A lower rate can still mean more total interest if you keep the loan to term.

Cash-out refinance: cheap money, long debt

A cash-out refi converts home equity into spendable cash at mortgage interest rates — far cheaper than credit cards or personal loans. The trade-off: you're attaching that debt to your home for the next 15 to 30 years. Use it for things that hold value (home improvements, paying off high-interest debt) and be cautious about using it for depreciating purchases.

Refinance FAQ

It's the number of months it takes for your monthly savings to repay the closing costs of the new loan. If you plan to stay in the home past that date, the refinance starts paying you back. If you'll sell or refinance again before then, you'll likely lose money.