# Refinance Calculator Calculate if refinancing your loan will save you money > Canonical page: https://elysiatools.com/en/tools/refinance-calculator - **Category:** Finance - **Keywords:** refinance, mortgage, loan, savings, interest rate, break-even, calculator ## Overview The Refinance Calculator helps you determine if switching to a new loan will result in long-term financial savings by comparing your current mortgage terms against potential new rates and associated closing costs. ## Inputs - **Current Loan Balance ($)** (number): Enter current loan balance - **Current Interest Rate (%)** (number): Enter current interest rate - **Remaining Term (years)** (number): Enter remaining loan term - **New Interest Rate (%)** (number): Enter new interest rate - **New Loan Term (years)** (number): Enter new loan term - **Closing Costs ($)** (number): Enter closing costs - **Cash Out ($)** (number): Enter cash out amount (optional) ## When to use - When market interest rates drop significantly below your current mortgage rate. - When you are considering consolidating debt or taking out equity through a cash-out refinance. - When you want to calculate your break-even point to see how long it takes for monthly savings to cover your closing costs. ## How it works - Enter your current loan balance, existing interest rate, and the remaining term of your current mortgage. - Input the proposed new interest rate, the desired loan term, and the estimated closing costs for the new loan. - Optionally include any cash-out amount if you plan to withdraw equity during the refinancing process. - Review the calculated monthly payment difference and the total interest savings to decide if refinancing is the right financial move. ## Use cases - Evaluating if a 1% drop in interest rates justifies the upfront cost of refinancing. - Determining if extending your loan term to lower monthly payments is worth the increase in total interest paid over time. - Assessing the financial impact of pulling equity out of your home for renovations or debt consolidation. ## Frequently asked questions ### What is a break-even point in refinancing? It is the amount of time required for your monthly savings to equal the total closing costs you paid to refinance the loan. ### Do I need to include closing costs? Yes, including accurate closing costs is essential, as these fees significantly impact whether refinancing will actually save you money. ### How does a cash-out refinance affect my savings? A cash-out refinance increases your total loan balance, which may increase your monthly payment and total interest paid, even if the interest rate is lower. ### Can I use this for non-mortgage loans? While designed for mortgages, this calculator can be used for any fixed-rate loan where you are comparing current terms against a new offer. ### Does this tool account for tax deductions? No, this calculator provides a mathematical comparison of loan terms and does not factor in individual tax implications or interest deductions. ## Related tools - [Daily Compound Interest Calculator](https://elysiatools.com/en/tools/compound-interest-daily): Calculate compound interest with daily compounding for savings and investments - [Future Value Calculator](https://elysiatools.com/en/tools/future-value): Calculate future value of investments with compound interest - [Credit Card Payoff Calculator](https://elysiatools.com/en/tools/credit-card-payoff): Compare avalanche (highest APR first) vs snowball (lowest balance first) strategies for paying off multiple credit cards. Enter cards as 'name, balance, APR%, minPayment%' per line plus an extra monthly payment. Shows payoff time, total interest, savings vs minimum-only, and balance decline curves. - [Debt Payoff Calculator](https://elysiatools.com/en/tools/debt-payoff-calculator): General-purpose debt payoff planner comparing avalanche, snowball, and minimum-only strategies. Enter debts as 'name, balance, APR%, minPayment $' per line plus an extra monthly payment. Shows payoff time, total interest, savings, balance decline curves, and a per-debt repayment detail table. - [Investment Calculator](https://elysiatools.com/en/tools/investment-calculator): Project investment growth with initial principal plus monthly contributions and compound interest. Supports compounding frequency, inflation-adjusted real value, and yearly contribution escalation, with a yearly breakdown table and nominal vs real balance curves. - [Discount Calculator](https://elysiatools.com/en/tools/discount-calculator): Calculate discounted prices, savings, and final price after applying percentage or fixed amount discounts - [Mortgage Amortization Calculator](https://elysiatools.com/en/tools/mortgage-amortization-calculator): Generate a full mortgage amortization table, compare extra-payment scenarios, and visualize total interest savings - [Rent vs Buy Total Cost of Ownership Tutor — Mortgage, Tax, Insurance, Maintenance + NPV Break-Even and IRR](https://elysiatools.com/en/tools/rent-vs-buy-total-cost-of-ownership-mortgage-tax-insurance-maintenance-irr-tutor): Side-by-side monthly rent-vs-buy simulation: mortgage amortization, property tax, insurance, HOA and maintenance against rent plus renter insurance; the renter invests the down payment and monthly savings at an opportunity-cost rate. Outputs break-even year on net sale proceeds, per-year differential NPV, SALT-cap-aware after-tax cash flows, a differential IRR, and a ±20% tornado sensitivity chart. ## Samples - [Android Image Processing Java Samples](https://elysiatools.com/en/samples/android-image-processing-java): Android Java image processing examples including reading/saving images, scaling, and format conversion - [Android Image Processing Kotlin Samples](https://elysiatools.com/en/samples/android-image-processing-kotlin): Android Kotlin image processing examples including reading/saving images, scaling, and format conversion - [Web Image Processing Python Samples](https://elysiatools.com/en/samples/web-image-processing-python): Web Python image processing examples using PIL/Pillow including reading, saving, resizing, and format conversion - [macOS Image Processing Objective-C Samples](https://elysiatools.com/en/samples/macos-image-processing-objectivec): macOS Objective-C image processing examples including image reading/saving, image scaling, and format conversion ## Related content - [Mortgage, Loan Payoff, and Housing Cost Planning](https://elysiatools.com/en/hubs/mortgage-loan-payoff-planning): Compare mortgage amortization, loan payoff, refinance, rent-versus-buy, and time-value scenarios with documented assumptions.