Loan payoff calculator

There are two honest ways to get out of a loan faster: pay more toward the one you have, or refinance into different terms. This calculator lays out your current path, then compares an extra-payment plan and a refinance side by side - refinance interest is netted against closing costs so the comparison isn’t misleading.

Rolled into the new balance so the comparison reflects the real cost of refinancing.

How the math works

The current path uses the standard amortization formula to find your existing monthly payment and total interest. Option A reruns the same loan with your extra payment added - because early principal reduction stops that amount from accruing interest for the rest of the term, small extras produce outsized savings. Option B simulates a new loan at the refinance rate and term, with any closing costs added to the balance rather than paid separately, then nets the new total interest and costs against what the current loan would have cost. A lower monthly payment on a longer refinance term can still cost more overall - the net figure is the number that actually answers “is this worth it.”

How do you calculate a refinance break-even point covers the timing question this tool’s net comparison is built around, and is refinancing actually worth the closing costs you have to pay again walks through when the math favors refinancing versus staying put. How does an extra payment actually change your amortization schedule explains why Option A moves the numbers the way it does, and does refinancing every time rates drop a little actually save money is worth reading before refinancing more than once.

Sources & further reading

This tool is a general educational estimate, not financial advice or a loan offer. Real quotes and closing costs vary by lender, credit, and loan type. See our disclaimer.