Whether refinancing is worth it, with a break-even

How this calculator works

Enter your current loan — balance, rate and the months remaining — and a proposed new rate, term and any fees. The tool computes your payment and remaining interest on both, then shows the monthly change, the change in total interest, and a break-even: how many months before the savings cover the fees.

The break-even

Refinancing usually costs something up front. The break-even tells you how long you need to keep the loan for the switch to pay off. If you’d clear the loan before then, refinancing loses money even at a lower rate.

Watch the term

A lower rate on a longer term can raise total interest even while cutting the payment. The tool shows lifetime interest both ways so a longer term’s cost is visible, not hidden behind a smaller monthly number.

What it can’t tell you

• The new rate you’d qualify for, or whether negative equity on a vehicle would block the refinance.
• Prepayment penalties or add-on products on the current loan, which can change the math.
• Credit effects of the new application’s hard inquiry.