Refinance Calculator
Compare a current loan with a new rate and term, including closing costs paid up front.
New monthly payment
$1,419.47
$268.55 lower than the current payment
From these numbers
The current loan payment is $1,688.02 for 25 years.
The new loan payment is $1,419.47 for 30 years. Closing costs of $4,000.00 are paid up front and are not added to the loan.
The new payment is $268.55 lower. The closing costs are recovered in 1 year, 3 months.
Interest is $256,404.68 on the current loan and $261,011.50 on the new loan, which is $4,606.82 more.
Over each loan's own term, the new loan costs $8,606.82 more after closing costs.
Current payment
$1,688.02
Costs recovered
1 year, 3 months
Current interest
$256,404.68
New interest
$261,011.50
Each month's interest is the balance times the monthly rate, rounded to the cent. The regular payment is the standard loan payment rounded to the cent, and the last month pays whatever balance is left. Closing costs are paid in cash and are not added to the new loan. Those costs are recovered in the first month when the cash paid on the new loan, including the costs, is less than or equal to the cash paid on the current loan. Interest is totaled over each loan's own term, so a longer new term can cost more interest even when the monthly payment is lower.
Learn more
How this calculator works and what to know before using it
What this calculator does
Compares the payment and interest on your current loan with a new rate and term. Closing costs are paid in cash and are not added to the new loan.
How to use it
- Enter the balance, the current rate, and the years left.
- Enter the new rate, the new term, and the closing costs.
- Read when the closing costs are recovered, and whether the new loan costs less over its own term.
Formula used
Fixed-rate loan payment, compared in cents
Monthly payment = P ร [r(1+r)โฟ] / [(1+r)โฟ โ 1], rounded to the cent. Interest each month is the balance times the monthly rate, rounded to the cent. Costs are recovered in the first month when cash paid on the new loan, including closing costs, is less than or equal to cash paid on the current loan.
Source. Each month's interest is the balance times the monthly rate, rounded to the cent. The regular payment is the standard loan payment rounded to the cent, and the last month pays whatever balance is left. Closing costs are paid in cash and are not added to the new loan. Those costs are recovered in the first month when the cash paid on the new loan, including the costs, is less than or equal to the cash paid on the current loan. Interest is totaled over each loan's own term.
Updated November 1, 2026
Example
The current loan payment is $1,688.02 for 25 years. The new loan payment is $1,419.47 for 30 years. Closing costs of $4,000.00 are paid up front and are not added to the loan. The new payment is $268.55 lower. The closing costs are recovered in 1 year, 3 months. Interest is $256,404.68 on the current loan and $261,011.50 on the new loan, which is $4,606.82 more. Over each loan's own term, the new loan costs $8,606.82 more after closing costs.
Good to know
- A lower payment can still cost more interest when the new term is longer.
- Closing costs are not financed.
Common questions
- Does a lower payment mean the refinance saves money?
- Only over the period you measure. A longer new term can charge more interest even when each payment is smaller. The result shows both the monthly difference and the interest over each loan's own term.
- Are closing costs added to the loan?
- No. They are paid up front. Recovery compares that cash, plus the new payments, with the payments on the current loan.
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