Loan Refinance Savings Calculator
Compare your current loan to a refinance offer — payment, interest, and total savings.
Every calculation runs locally in your browser. Real refinances often carry closing costs or fees not modeled here — subtract those from the lifetime savings to see the true net benefit.
Current monthly payment
$348
New monthly payment
$311
Monthly savings
$37
Lifetime interest savings
$4,489
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
A lower rate isn't always a lower lifetime cost
Refinancing to a lower rate but a longer term can shrink your monthly payment while actually increasing total interest paid — you're borrowing the same balance over more months, even at a better rate. This calculator compares total interest, not just the monthly payment, precisely to catch that case. If your new term matches your remaining current term, a lower rate almost always wins on both counts.
Frequently asked questions
How is the break-even point on refinancing calculated?
Closing costs on the new loan divided by the monthly payment savings — that gives the number of months you need to stay in the loan before the refinance actually saves you money net of its upfront cost.
When does refinancing generally make sense?
When the new rate is meaningfully lower than your current one, you plan to stay past the break-even point, and closing costs are reasonable relative to the loan size — this calculator quantifies all three for your specific numbers.