How to interpret this estimate

Estimate whether a lower-rate refinance may recover closing costs. Compares fixed-rate payments using the same remaining term and balance.

When this result is useful

Use this calculator to compare how Current loan balance, Current annual rate, New annual rate, Remaining term, and Refinance closing costs change Current monthly payment, New monthly payment, Monthly savings, Break-even time, and Estimated term savings after costs, and to review alternative values before using the estimate for planning.

Common limitations

Break-even equals closing costs divided by positive monthly payment savings. Taxes, insurance, cash-out amounts, prepayment penalties, term changes, and opportunity cost are excluded. Review the units and assumptions before interpreting the result.

This calculator uses the selected inputs and the fixed formula behind the tool to produce an estimate. Review the units, assumptions, and result labels before using the output for planning.

Finance results are educational planning estimates only. They may not include fees, taxes, inflation, rate changes, product terms, or every detail that can affect a real financial decision.

Read the financial disclaimer for more context.