Refinance break-even
New loan, new terms.
New loan, new terms.
How long until it pays off?
See whether refinancing your loan to a lower rate actually saves you money — and when.
Your current loan.
Enter your existing loan details.
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The refinance offer.
Enter the new loan terms you're considering.
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Break-even point
When your monthly savings cover the closing costs.
Keep current
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Total remaining
Refinanced
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Monthly payment change.
Current
Refinanced
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When to refinance
Refinancing replaces your current loan with a new one, ideally at better terms. It makes sense when the savings outweigh the costs.
Rule of thumb. Refinancing often makes sense if you can lower your rate by at least 1% and plan to keep the loan long enough to pass the break-even point.
Refinance checklist
- Lower rate available? — compare offers from multiple lenders
- Closing costs reasonable? — factor in all fees
- Break-even timeline? — will you keep the loan long enough?
- Term considerations? — longer term = lower payment but more total interest
Common scenarios
- Auto loans — rates drop or your credit improves
- Student loans — federal to private (be cautious), or rate reduction
- Personal loans — credit-score improvement unlocks better rates
- Mortgages — rate drops significantly (usually 0.5–1%+)