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Refinance Calculator

Use this refinance calculator to compare payment, payoff, or borrowing scenarios for refinance.

Primary answer
New monthly payment
Inputs to verify
Current loan balance, Current annual rate, and Current remaining term
Use type
Use as an estimate that depends on assumptions.
Keyword intent
refinance calculator

Calculator

Refinance Calculator

Calculates new monthly payment from current loan balance, current annual rate, current remaining term. Defaults are filled in so you can review a working example before changing inputs.

USD

Remaining principal balance on the current loan.

%

Use 7 for 7%. Current market rates are not looked up.

months

Whole number of monthly payments remaining.

%

User-entered rate for the proposed refinance loan.

More inputs3 additional assumptions
months

Whole number of monthly payments on the new loan.

USD

User-entered closing costs paid upfront, not financed into this new loan.

USD

Additional cash-out or financed costs added to the new loan amount.

Result

Result reflects the current submitted inputs.

  • Risk B
  • Reviewed 2026-05-26
  • 4 sources
New monthly payment1,458.93 USD
Monthly savings308.02 USD
Current monthly payment1,766.95 USD
New loan amount250,000 USD
Remaining cost if kept530,084.4 USD
Total cost of new loan531,215.57 USD
Lifetime savings-1,131.17 USD
Break-even months19.5 months
Current monthly rate0.583333%
New monthly rate0.479167%

Breakdown

Current monthly periodic rate
0.5833%
New monthly periodic rate
0.4792%
New loan amount
250,000 USD
Closing costs paid upfront
6,000 USD
  • Both loans are simplified fixed-rate, fully amortizing loans with monthly end-of-period payments.
  • All balances, rates, terms, closing costs, and cash-out amounts are user-entered; no current market rate is looked up.
  • Closing costs are modeled as paid upfront. Financed costs should be entered in the cash-out/new-loan amount.
  • Taxes, escrow, insurance, points, payoff fees, prepayment penalties, exact closing dates, interest refunds, and legal APR disclosures are excluded.
  • A lower monthly payment can still cost more over the full modeled term if the new term is longer or costs are high.
  • This is an educational estimate, not financial advice, a payoff quote, or a lender disclosure.

Accuracy notes

Risk level
B
Reviewed
2026-05-26
Sources
4
Primary result
New monthly payment

Formula logic is kept in a pure calculator module with fixtures, source notes, and page-visible assumptions.

Categories

What the result means

New monthly payment is the number to carry forward from this refinance calculation. Fixed monthly payment for the proposed new loan. Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Use monthly savings, current monthly payment, and new loan amount to explain why new monthly payment moved when an input changed. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

New monthly paymentFixed monthly payment for the proposed new loan.
Monthly savingsCurrent monthly payment minus new monthly payment. Negative means the new payment is higher.
Current monthly paymentEstimated payment on the current remaining balance, rate, and term.
New loan amountCurrent balance plus user-entered cash-out amount.

Use the result this way

  1. Start with New monthly payment, then use supporting outputs only to explain the primary answer.
  2. Verify current loan balance, current annual rate, and current remaining term before copying the result.
  3. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.
  4. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

User job

How to use this calculator

Use Refinance Calculator when you need new monthly payment, then use monthly savings and current monthly payment to check the context for planning conversations, quote comparisons, payment checks, and scenario review.

Best for

  • Comparing one financial scenario with another
  • Preparing questions for a lender, advisor, or statement review
  • Reviewing a default example before entering your own current loan balance and current annual rate.

Check before relying

  • Verify rates, fees, timing, taxes, and local rules against official documents before acting.
  • Both loans are simplified fixed-rate, fully amortizing loans with monthly end-of-period payments.
  • All balances, rates, terms, closing costs, and cash-out amounts are user-entered; no current market rate is looked up.
  • Source context: Consumer Financial Protection Bureau, reviewed 2026-05-26.

Next useful step

Formula

Refinance comparison estimates current and new fixed monthly payments, monthly savings, total modeled cost, lifetime savings, and break-even months when monthly savings are positive. Key assumptions: Both loans are simplified fixed-rate, fully amortizing loans with monthly end-of-period payments. All balances, rates, terms, closing costs, and cash-out amounts are user-entered; no current market rate is looked up. Closing costs are modeled as paid upfront. Financed costs should be entered in the cash-out/new-loan amount.

  • Refinance comparison estimates current and new fixed monthly payments, monthly savings, total modeled cost, lifetime savings, and break-even months when monthly savings are positive.
  • Both loans are simplified fixed-rate, fully amortizing loans with monthly end-of-period payments.
  • All balances, rates, terms, closing costs, and cash-out amounts are user-entered; no current market rate is looked up.
  • Primary source context: Consumer Financial Protection Bureau.

Inputs

Enter current loan balance, current annual rate, current remaining term, and new annual rate for planning conversations, scenario checks, and lender or statement comparison. Before calculating, keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise. Current loan balance: Remaining principal balance on the current loan. Current annual rate: Use 7 for 7%. Current market rates are not looked up. Current remaining term: Whole number of monthly payments remaining. New annual rate: User-entered rate for the proposed refinance loan.

Current loan balanceRemaining principal balance on the current loan.
Current annual rateUse 7 for 7%. Current market rates are not looked up.
Current remaining termWhole number of monthly payments remaining.
New annual rateUser-entered rate for the proposed refinance loan.
New loan termWhole number of monthly payments on the new loan.
Closing costs paid upfrontUser-entered closing costs paid upfront, not financed into this new loan.
Cash-out amountAdditional cash-out or financed costs added to the new loan amount.

Example

Using the default inputs, Refinance Calculator returns new monthly payment of 1,458.93 USD. Adjust current loan balance, current annual rate, current remaining term, and new annual rate to match your own scenario.

FAQ

How is new monthly payment calculated here?

Refinance comparison estimates current and new fixed monthly payments, monthly savings, total modeled cost, lifetime savings, and break-even months when monthly savings are positive. The first assumption to check is: Both loans are simplified fixed-rate, fully amortizing loans with monthly end-of-period payments.

What does New monthly payment mean for refinance?

Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Secondary values such as monthly savings, current monthly payment, and new loan amount are there to explain the primary answer, not to replace it.

What should I enter for Current loan balance?

Remaining principal balance on the current loan. Use USD for this field. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.

How does Current annual rate change new monthly payment?

Use 7 for 7%. Current market rates are not looked up. Changing it can alter new monthly payment because the formula uses the submitted inputs together. Also compare APR period, compounding, fees, payment timing, taxes, insurance, and extra-payment assumptions.

Why does the refinance example show 1,458.93 USD for new monthly payment?

The default inputs produce 1,458.93 USD for new monthly payment. Treat that as a format and scale check, then replace every default value with your own inputs.

What should I compare before using the refinance payment result?

Compare the rate period, payment timing, fees, taxes, escrow items, payoff assumptions, and the actual quote or statement that governs the decision.

Sources

Last reviewed: 2026-05-26

  • Reviewed 2026-05-26
    Should I refinance? Consumer handoutConsumer Financial Protection Bureau. Refinance comparison framing, closing-cost warning, and monthly-payment versus long-term-cost tradeoff.
    Scope
    Official consumer refinance guidance covering rate, payment, term, and cost tradeoffs.
    Supports
    Refinance comparison framing, closing-cost warning, and monthly-payment versus long-term-cost tradeoff.
  • Reviewed 2026-05-26
    What is a no-cost refinance?Consumer Financial Protection Bureau. Closing-cost assumptions, financed-cost warning, and disclaimer copy.
    Scope
    Consumer guidance explaining refinance closing costs and financed-cost tradeoffs.
    Supports
    Closing-cost assumptions, financed-cost warning, and disclaimer copy.
  • Reviewed 2026-05-26
    PMT functionMicrosoft Support. Constant-payment loan behavior, monthly rate consistency, and end-of-period payment timing.
    Scope
    Financial function documentation for fixed payments and constant interest rate loans.
    Supports
    Constant-payment loan behavior, monthly rate consistency, and end-of-period payment timing.
  • Reviewed 2026-05-26
    Paying Off Your Loans: Loan AmortizationMississippi State University Extension Service. Fixed payment formula, interest and principal split, and long-term loan assumptions.
    Scope
    Educational finance reference for loan amortization schedules and fixed-payment formulas.
    Supports
    Fixed payment formula, interest and principal split, and long-term loan assumptions.

Disclaimer

This borrowing calculator is for educational payment and payoff estimates only. It is not a lender quote, credit approval, legal disclosure, tax advice, or a substitute for reviewing contracts, fees, escrow items, and local rules.