Enter current and new loan details to compare…
The Refinance Calculator compares current vs new mortgage, shows monthly savings, total interest saved, break-even point, and net gain. Covers USA, UK, Canada, Australia, India. Avg rates 2025: Current 7.5%, Refinance 5.5%, Closing $5,000.
A Refinance Calculator is a powerful tool for homeowners considering refinancing their mortgage, helping evaluate potential savings and affordability. By inputting details like current loan balance, interest rate, remaining term, new loan rate, term, and closing costs, it estimates new monthly payments, total interest, and breakeven point, ensuring refinancing aligns with your financial goals.
The calculator compares your existing mortgage’s EMI—calculated as EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P is principal, R is monthly interest rate, and N is months—with the new loan’s terms. For example, refinancing a $200,000 loan at 6% (20 years remaining) to a 4% rate over 15 years might reduce monthly payments from $1,432 to $1,479, saving $50,000 in interest, but factoring in $5,000 closing costs, breakeven takes about 3 years.
Refinancing your mortgage can help you save money, lower monthly payments, or pay off your home faster. But how do you know if it’s worth it? The Refinance Calculator from GCalculate.com makes it easy to find out.
With just a few details — your current loan balance, interest rate, and the new loan terms — our calculator instantly shows how much you can save in interest, reduce monthly payments, and how long it will take to break even on refinancing costs.
A Refinance Calculator is a financial tool designed to help homeowners determine whether refinancing their existing mortgage makes financial sense.
It compares your current loan to a new loan with different interest rates and terms, helping you see:
How much your monthly payment will change
The total interest savings over time
The break-even point — when your savings surpass your refinance costs
This tool is especially valuable if interest rates have dropped or if you want to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
The Refinance Calculator analyzes your current loan and compares it with potential new loan terms using this formula:
Formula:
Where:
M = Monthly payment
P = Loan principal
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in months)
By applying this formula to both your current and proposed loans, the calculator displays the difference in monthly payments, interest paid, and total savings.
To get accurate results, enter the following:
Current Loan Balance – The remaining principal on your existing mortgage
Current Interest Rate – Your present mortgage rate
Remaining Loan Term – How many years are left on your current mortgage
New Interest Rate – The rate offered for refinancing
New Loan Term – Typically 15, 20, or 30 years
Closing Costs – Fees for refinancing (appraisal, title, origination, etc.)
Once entered, the calculator instantly displays your potential savings and break-even period.
Let’s say you currently have a $250,000 loan at 6.5% interest with 20 years left.
Your monthly payment is roughly $1,864.
If you refinance to 5.0% interest for 20 years, your new payment would be about $1,650 — saving $214 per month and over $51,000 in total interest.
If refinancing costs you $4,000, your break-even point would be roughly 19 months — after which you enjoy pure savings.
Refinancing can be a powerful financial move when done at the right time. The Refinance Calculator from GCalculate.com helps you make data-driven decisions — showing you exactly how much you can save, how long it’ll take to recoup your costs, and whether it’s the right time to refinance.
With clear insights and instant calculations, you can confidently move toward a smarter, more affordable mortgage today.
Try the free Refinance Calculator now on GCalculate.com and take control of your home financing journey.
A Refinance Calculator compares your current loan with a new one, showing how refinancing will affect your monthly payments, interest costs, and total savings.
If your new loan lowers your monthly payment or total interest — after factoring in closing costs — refinancing can be a smart financial move.
The break-even point is when your total savings from lower payments equal the costs of refinancing. After that, every payment saves you money.
Yes, but you may receive a higher interest rate. Improving your credit score before refinancing can help you qualify for better terms.
There’s no legal limit. However, you should only refinance when it results in meaningful financial benefits or improved loan terms.