VA Refinance Calculator
Compare your current VA loan against a new one and see the month your savings finally cover the cost of refinancing.
Your current loan
A 30-year loan taken out 4 years ago has 26 years left.
The new loan
Cost to refinance
An IRRRL fee is a flat 0.50%. Veterans receiving VA disability compensation pay $0.
Origination, title, recording. An IRRRL usually needs no new appraisal.
Monthly savings
Estimated$333
Break-even in 16 months (1.3 years).
Refinancing $320,000 from 6.75% to 5.5% over 30 years makes your principal and interest $333 lower each month, at a cost of $5,100.
Payment comparison
Cost to refinance
Total interest
Principal and interest only. Taxes, insurance, and HOA dues do not change when you refinance, so they are left out of both sides of the comparison.
Monthly savings
$333
How the break-even point works
Refinancing is never free. On a VA IRRRL you pay a flat 0.50% funding fee plus your lender's costs — even when those amounts are financed rather than paid in cash. The break-even point is simply the total cost divided by the monthly savings: the month your lower payment finally pays back what the refinance took.
If you expect to sell, PCS, or refinance again before that month arrives, the lower payment never catches up. Read the VA IRRRL guide for the eligibility and net tangible benefit rules behind these numbers.
Watch the term, not just the rate
Resetting a loan you are several years into back to a fresh 30-year term almost always lowers the payment, and often raises the total interest you pay. The total interest rows above compare each loan over its own remaining term so you can see that trade honestly. Trying a 20- or 15-year new term is usually the fix.
If you are buying rather than refinancing, use the VA mortgage calculator instead, or check the funding fee calculator for purchase and cash-out fee tiers.
Common questions
What is the break-even point on a VA refinance?
It is the number of months of payment savings needed to recover what the refinance cost you — the VA funding fee plus lender and third-party closing costs. If you plan to sell or refinance again before that month, the refinance loses money even though the payment is lower.
What is the funding fee on an IRRRL?
A flat 0.5% of the loan amount for every borrower, regardless of down payment or prior VA use. Veterans receiving VA disability compensation are exempt and pay $0.
Can I roll VA refinance costs into the new loan?
Yes. On an IRRRL the funding fee and allowable closing costs can be financed, so you can close with little or no cash. That raises your balance, so the break-even math still matters.
Why does a lower payment sometimes cost more?
Resetting a loan you are 8 years into back to a fresh 30-year term lowers the monthly payment but stretches the interest over more years. This calculator compares total interest on each loan's own term so you can see when that happens.
What to do with this number
A lower payment is not automatically a win — check the break-even month and the total interest before you commit.
- VA IRRRL Guide
Eligibility and the net tangible benefit rule.
- VA Funding Fee Calculator
Confirm your fee percentage — or that you're exempt.
Sources and last verified
- VA funding fee rates: VA.gov funding fee and closing costs
- Rates effective April 7, 2023. Last verified August 31, 2026.
- Payments use standard amortization. No lender-specific pricing is applied.
- What these estimates exclude: your lender's actual rate lock and fees, HOA dues, flood or mortgage-recording costs, escrow-shortage adjustments, and any county-specific tax exemption you may qualify for.
- Every formula and assumption is documented in how we calculate.
Written and reviewed by the Veteran Home Calc editorial team against VA's published guidance. Rates and program rules last reviewed August 31, 2026.
Veteran Home Calc is an independent educational site. It is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and it does not sell leads or collect your numbers — results are estimates, not loan approvals, offers, or financial advice.