Refinance Calculator
Compare the principal-and-interest payment on a US fixed-rate loan with a new rate and term.
New payment $2,147.29/month. Cash closing costs are covered after 15.94 months of the lower payment.
| Current principal and interest | $2,398.20/month |
| New principal and interest | $2,147.29/month |
| Monthly difference | $250.92 |
| Interest left on the current loan | $463,352.76 |
| Interest on the new loan | $373,023.14 |
How it works
The monthly payment is M = P·r / (1 − (1+r)^−n). P is the current balance, n is the number of months, and r is the annual note rate divided by 12. That is the usual US fixed-rate convention. It is not the Canadian method, which converts a semi-annual rate into a monthly rate.
Closing costs are treated as cash you pay, not as money added to the new loan. Break-even months are those cash costs divided by the drop in the monthly payment. If the new payment is not lower, there is no break-even. Interest is the scheduled payments minus the balance. Taxes, insurance, points, and prepayment penalties are not included.
FAQ
Related calculators
- Hourly to SalaryConvert an hourly wage to yearly pay before tax.
- Car Payment CalculatorEstimate a US auto loan payment, interest, and total cost.
- Paycheck CalculatorEstimate 2026 take-home pay from IRS and state tax tables.
- Tax Refund EstimatorEstimate a 2026 federal refund from wages, withholding, and the child tax credit.
A payment comparison, not a lender offer or financial advice. Your note and closing disclosure control the actual payment.