Refinance Calculator
A lower rate isn't automatically a better deal. See the new payment, how many months until closing costs pay for themselves, and whether you'd pay more or less by the end.
Total cost if you keep the loan to the end
How the balance falls
Is this refinance worth it? Get a plain-English read
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
Two questions every refinance must answer
1. How soon do I break even? Divide closing costs by the monthly savings. Mortgage closing costs commonly run 2–5% of the loan amount, so a refinance that saves $120 a month on $6,000 of costs needs 50 months to earn its keep. If you might move before then, it's a loss.
2. Do I pay less in total? A new 30-year loan on a mortgage you've already paid for seven years restarts the clock. Your payment falls, but you may pay interest for 37 years in total. The dashed line on the chart is your current loan; the solid line is the new one.
For car loans, closing costs are usually near zero, so the break-even is immediate. The same term trap applies, though: refinancing 36 months left into a new 60-month loan can cost more even at a lower rate.
Questions people ask
When does refinancing make sense?
When the monthly savings repay your closing costs within the time you expect to keep the loan, and the total cost over that period is lower. The break-even month above answers the first question; the "total cost if you keep it" line answers the second.
What is the refinance break-even point?
Closing costs divided by monthly savings. If a refinance costs $4,500 and saves $150 a month, you break even in 30 months. Sell or refinance again before then and you lose money.
Can a lower payment still cost me more?
Yes. Resetting a loan with 24 years left to a new 30-year term lowers the payment partly by stretching it out, which can add interest overall. Compare total remaining cost, or pick a new term equal to your remaining term.
Does this work for auto loan refinancing?
Yes. Enter your current car loan balance, rate and months left, and the new offer. Auto refinances usually have small or no closing costs, so the break-even is often immediate.
Should I roll closing costs into the new loan?
Rolling them in avoids cash at closing but adds them to the balance, so you pay interest on them. The calculator lets you choose either way.