Refinance Savings Calculator
Compare your current loan vs. refinancing options to see potential savings.
Who This Is For
If you've received a refinancing offer or you're wondering whether a lower interest rate is worth the fees, this calculator helps you compare. It's useful for anyone with a loan, credit card balance transfer offer, or debt consolidation option.
Example Scenario
You owe $10,000 at 18% APR, paying $300/month. A refinance offer gives you 10% APR over 48 months with $500 in fees.
The calculator shows you'd save over $2,000 in interest and break even on fees within about 4 months.
How It Works
This calculator compares your current loan to a refinanced option:
- Calculates total cost of current loan
- Calculates total cost of refinanced loan including fees
- Shows monthly payment difference
- Determines break-even point
The break-even point tells you how long until the refinance saves you money after accounting for fees.
Assumptions and Formula
Assumptions used in this model:
- Current and new APR remain fixed through the term.
- Refinance fees are financed into the new balance.
- No prepayment penalties or late fees are included.
Savings formula: net savings = total current cost - total refinance cost. Break-even month is the first month when cumulative payment and interest savings exceed refinance fees.
How to Interpret Your Results
| Signal | What It Means | Action |
|---|---|---|
| Break-even in under 12 months | Fee drag is low relative to rate savings | Refinance is likely compelling |
| Lower payment but higher total cost | Term extension is increasing lifetime interest | Shorten term or make extra payments |
| Savings disappear with modest fee increase | Offer is fee-sensitive | Negotiate fees or shop alternate lenders |
Frequently Asked Questions
Deep Dive Guide
Read the refinancing decision guide
How to evaluate offers, fees, and break-even timing with confidence.