Refinance Comparison Calculator
Your loan vs. the refinance offer: the new payment, when the closing costs actually pay for themselves, and whether you come out ahead in the time you'll really keep the loan.
Ben / Reviewed Sep 27, 2026 / v2.0.0
Results
Showing the numbers you calculated- Monthly payment change
- ($153.98)
- $1,938.25 → $2,092.23 (higher)
- Break-even
- 21
- Months · 1 year 9 months, around 08/01/2028
- Savings over your holding period
- $13,617.15
- Interest + costs over 5 years
- Lifetime savings
- $88,577.46
- Interest + costs, both loans to payoff
- Refinance costs
- $6,060.61
- Rolled into the new loan
- New loan amount
- $256,060.61
- Points: $2,560.61
- Simple break-even
- —
- Months · costs ÷ payment savings
- New payoff date
- 11/01/2041
- Current loan: 11/01/2046
Cost to date: interest (current) vs. interest + costs (refinance)
Savings to date turn positive at the break-even point.
Swipe the table sideways to see all 6 columns.
| Year | Current loan | Refinance | Savings to date | Balance (current) | Balance (refinance) |
|---|---|---|---|---|---|
| 1 | $17,311.58 | $19,861.77 | ($2,550.19) | $244,052.58 | $244,755.01 |
| 2 | $34,193.23 | $33,025.22 | $1,168.01 | $237,675.23 | $232,811.70 |
| 3 | $50,613.87 | $45,514.96 | $5,098.91 | $230,836.87 | $220,194.68 |
| 4 | $66,540.16 | $57,293.01 | $9,247.15 | $223,504.16 | $206,865.97 |
| 5 | $81,936.36 | $68,319.21 | $13,617.15 | $215,641.36 | $192,785.41 |
| 6 | $96,764.17 | $78,551.17 | $18,213.00 | $207,210.17 | $177,910.61 |
| 7 | $110,982.49 | $87,944.05 | $23,038.44 | $198,169.49 | $162,196.73 |
| 8 | $124,547.27 | $96,450.55 | $28,096.72 | $188,475.27 | $145,596.47 |
| 9 | $137,411.23 | $104,020.67 | $33,390.56 | $178,080.23 | $128,059.83 |
| 10 | $149,523.72 | $110,601.59 | $38,922.13 | $166,933.72 | $109,533.99 |
| 11 | $160,830.45 | $116,137.51 | $44,692.94 | $154,981.45 | $89,963.15 |
| 12 | $171,273.15 | $120,569.48 | $50,703.67 | $142,165.15 | $69,288.36 |
| 13 | $180,789.35 | $123,835.23 | $56,954.12 | $128,422.35 | $47,447.35 |
| 14 | $189,312.08 | $125,868.96 | $63,443.12 | $113,686.08 | $24,374.32 |
| 15 | $196,769.53 | $126,601.20 | $70,168.33 | $97,884.53 | $0.00 |
New loan schedule
Swipe the table sideways to see all 6 columns.
| # | Date | Payment | Interest | Principal | Balance |
|---|---|---|---|---|---|
| 1 | 12/01/2026 | $2,092.23 | $1,173.61 | $918.62 | $255,141.99 |
| 2 | 01/01/2027 | $2,092.23 | $1,169.40 | $922.83 | $254,219.16 |
| 3 | 02/01/2027 | $2,092.23 | $1,165.17 | $927.06 | $253,292.10 |
| 4 | 03/01/2027 | $2,092.23 | $1,160.92 | $931.31 | $252,360.79 |
| 5 | 04/01/2027 | $2,092.23 | $1,156.65 | $935.58 | $251,425.21 |
| 6 | 05/01/2027 | $2,092.23 | $1,152.37 | $939.86 | $250,485.35 |
| 7 | 06/01/2027 | $2,092.23 | $1,148.06 | $944.17 | $249,541.18 |
| 8 | 07/01/2027 | $2,092.23 | $1,143.73 | $948.50 | $248,592.68 |
| 9 | 08/01/2027 | $2,092.23 | $1,139.38 | $952.85 | $247,639.83 |
| 10 | 09/01/2027 | $2,092.23 | $1,135.02 | $957.21 | $246,682.62 |
| 11 | 10/01/2027 | $2,092.23 | $1,130.63 | $961.60 | $245,721.02 |
| 12 | 11/01/2027 | $2,092.23 | $1,126.22 | $966.01 | $244,755.01 |
Current loan schedule
Swipe the table sideways to see all 6 columns.
| # | Date | Payment | Interest | Principal | Balance |
|---|---|---|---|---|---|
| 1 | 12/01/2026 | $1,938.25 | $1,458.33 | $479.92 | $249,520.08 |
| 2 | 01/01/2027 | $1,938.25 | $1,455.53 | $482.72 | $249,037.36 |
| 3 | 02/01/2027 | $1,938.25 | $1,452.72 | $485.53 | $248,551.83 |
| 4 | 03/01/2027 | $1,938.25 | $1,449.89 | $488.36 | $248,063.47 |
| 5 | 04/01/2027 | $1,938.25 | $1,447.04 | $491.21 | $247,572.26 |
| 6 | 05/01/2027 | $1,938.25 | $1,444.17 | $494.08 | $247,078.18 |
| 7 | 06/01/2027 | $1,938.25 | $1,441.29 | $496.96 | $246,581.22 |
| 8 | 07/01/2027 | $1,938.25 | $1,438.39 | $499.86 | $246,081.36 |
| 9 | 08/01/2027 | $1,938.25 | $1,435.47 | $502.78 | $245,578.58 |
| 10 | 09/01/2027 | $1,938.25 | $1,432.54 | $505.71 | $245,072.87 |
| 11 | 10/01/2027 | $1,938.25 | $1,429.59 | $508.66 | $244,564.21 |
| 12 | 11/01/2027 | $1,938.25 | $1,426.62 | $511.63 | $244,052.58 |
What this does
It lines up your current loan against a refinance offer and answers the only questions that matter: what's the new payment, how long until the closing costs pay for themselves, and — for the number of years you'll actually keep the loan — which one costs less?
It counts every cost, including the ones rolled into the new loan. "No out-of-pocket costs" doesn't mean no costs; it means you're borrowing them.
How the math works
Both loans get a full schedule. Then over any stretch of time, the cost of each option is:
current loan: interest paid refinance: interest paid + all closing costs, points, and fees
That's the fair comparison because principal is just your own money moving from one pocket to the other — interest and fees are what you lose.
- Break-even = the first month the interest saved adds up to the refinance costs.
- Simple break-even = costs ÷ monthly payment savings. Quick, but it gets fooled when the new term is longer or shorter.
- Points are a % of the new loan. When costs are rolled in, the new loan = (balance + other costs) ÷ (1 − points%).
A lower payment isn't automatically a better deal. Stretch 20 years left into a new 30-year loan and the payment drops even at the same rate — you just pay interest for longer.
Check my math: a worked example
You owe $250,000 at 7.00% with 240 months left, and you're offered 5.50% for 15 years with $3,500 in costs plus 1 point, all rolled into the loan.
- Points: $2,560.61. Total costs: $6,060.61. New loan: $256,060.61.
- Payment goes from $1,938.25 to $2,092.23 — $153.98 more a month.
- The interest saved covers the costs in month 21 (1 year 9 months).
- Over the 5 years you'll keep it: $81,936.36 of interest on the current loan vs. $68,319.21 of interest + costs on the new one — $13,617.15 saved.
- Over the full life: $215,178.66 vs. $126,601.20.
For the time you plan to keep the loan, the refinance comes out ahead.
These numbers come straight from the calculator using its example inputs — if the math ever changes, this example changes with it.
Mistakes I see a lot
- Treating rolled-in costs as free. They're added to the balance and you pay interest on them.
- Using the simple break-even when the terms are different. A shorter new term raises the payment even when it saves a ton of interest.
- Forgetting how long you'll really keep the loan. If you'll move in three years and break even in five, the refinance loses money.
- Comparing APRs from two lenders without comparing the total costs. Run each offer through here.
Questions people ask
- Why does break-even use interest instead of the payment?
- The payment includes principal, and principal isn't a cost — it's your equity. Comparing interest + fees is what tells you which loan actually costs less.
- Should I pay points?
- Points trade cash now for a lower rate. They pay off only if you keep the loan past the break-even. Try the offer with and without points here.
- What about the tax deduction for mortgage interest?
- Not included. If you itemize, a lower-interest loan also means a slightly smaller deduction, which shrinks the savings a bit.
- How do I book refinance costs?
- For a business loan, lender fees and closing costs are usually debt issuance costs amortized over the new loan (see the Loan Fee Amortization calculator). Whether it's treated as a modification or a new loan has its own rules — ask your accountant.
- Does the spreadsheet recalculate?
- Yes. Both schedules, the cost comparison, and the month-by-month break-even all run off the Inputs sheet.
Assumptions and limits
- Both loans are fixed-rate, monthly, and rounded like a lender (payment and each month's interest to the cent). Both first payments are one month after the refinance date.
- Points are a percentage of the new loan. If you roll the costs in, the new loan = (balance + closing costs + lender fees) ÷ (1 − points%), so the points on the points are included.
- The cost of either option over any stretch of time = the interest paid + (for the refinance) every closing cost, whether you paid it in cash or rolled it into the loan. Rolled-in costs aren't free — they're borrowed.
- Break-even is the first month the interest you've saved covers all the refinance costs. The simple version (costs ÷ monthly payment savings) is shown too, but it can mislead when the terms are different.
- If you enter your current payment, the current loan runs at that payment until it's paid off. Leave it blank and it's the payment that pays off the balance over the remaining term.
- No taxes (mortgage-interest deduction), escrow, prepayment penalties, cash-out, or investing the monthly difference. Money isn't discounted for time.
Disclaimer: Educational and planning use only. Results depend on what you enter and may not match your lender, your tax return, or professional accounting treatment. Informational content + opinions only — not tax/legal advice.