Free loan refinance savings calculator
Calculate your refinance break-even and savings — compare old and new loan terms to see monthly savings, break-even months, and net savings, updated live, as you type.
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Does not include PMI, property tax, or insurance changes. Consult a mortgage professional before refinancing.
Results are estimates. Consult a professional.
How the loan refinance savings calculator works
Refinancing replaces your current loan with a new one — ideally at a lower rate, shorter term, or both. The calculator computes your new monthly payment on the outstanding balance, compares it to your current payment, and determines monthly savings. Dividing closing costs by monthly savings gives the break-even point: the number of months you must keep the new loan before it starts saving money.
Worked example: $18,000 car loan refinanced from 9.5% to 7%
Sam has an $18,000 car loan at 9.5% APR over 48 months, currently paying $475/mo. After 6 months, the remaining balance is $17,000. Sam qualifies to refinance to 7% APR over the remaining 48 months. Auto lenders typically charge no closing costs for a refi.
Monthly savings from refinancing at lower rates
The table shows estimated monthly payment savings when refinancing from 10% to 7% for common loan balances and terms. Actual savings depend on your current rate, remaining balance, and any closing costs.
| Loan balance | 36 months — savings/mo | 48 months — savings/mo | 60 months — savings/mo |
|---|---|---|---|
| $15,000 | $24 | $22 | $20 |
| $25,000 | $40 | $37 | $33 |
| $50,000 | $80 | $74 | $66 |
Source: CFPB refinancing guide. Savings shown are from refinancing at 10% → 7% on the same remaining term. Closing costs not included; subtract closing costs to find net savings.
Tips for getting the most from a loan refinance
Refinancing makes sense when the rate drop is meaningful and you plan to keep the loan long enough to clear the break-even point. Here is how to maximize the benefit.
- Calculate your break-even before signing. Divide total closing costs by your monthly savings. If you plan to sell or pay off the loan before break-even, refinancing costs you money.
- Watch out for extending the term. A lower rate paired with a longer term can reduce your monthly payment but increase total interest paid. Use the calculator to compare total cost, not just payment.
- Check your credit first. Rate offers improve substantially above 680, 720, and 760 credit score thresholds. Running the refi after a score boost could unlock a meaningfully better rate.
- Shop at least three lenders. Auto and personal loan refinance rates vary widely across credit unions, online lenders, and banks. Credit unions often offer the sharpest rates with no origination fee.
- Time it with remaining balance. Refinancing early in a loan term captures more interest savings because more months of interest remain. Refinancing in the final year rarely pays off.
Accuracy and limitations
This calculator assumes fixed rates on both old and new loans, no prepayment penalties, and that the full remaining balance is refinanced. Actual closing costs, origination fees, and lender-specific terms will affect real-world savings. For mortgage refinancing, also factor in points, escrow resets, and PMI implications.
Not financial advice — consult a financial professional for your situation.
Loan refinancing terms defined
About this loan refinance savings calculator
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