Refinance Calculator
Compare your current mortgage with a new refinance offer to find out if refinancing makes financial sense.
Compare your current mortgage payment against a new refinance offer, including closing costs, to see your monthly savings and break-even point.
How Refinance Calculator Works
The calculator computes your current monthly payment from your existing balance, rate, and remaining term, then computes a new payment using the proposed new rate and term on the same balance. The difference between the two is your monthly savings (or added cost, if the new payment is higher).
Total savings compares the total remaining cost of your current loan (current payment × months remaining) against the total cost of the new loan (new payment × new term, plus closing costs) — capturing not just the monthly difference but the full lifetime cost comparison, including any change in loan term.
The break-even point divides your closing costs by your monthly savings, showing how many months it takes for the savings to offset the upfront cost of refinancing — a shorter break-even period generally makes refinancing more clearly worthwhile, especially if you plan to stay in the home for a while.
See It In Action
Who Uses Refinance Calculator and Why
- Checking whether refinancing to a lower interest rate would actually lower your monthly mortgage payment enough to justify closing costs.
- Estimating how many months it will take for the monthly savings from refinancing to offset the closing costs.
- Comparing the total lifetime cost of staying on your current loan versus refinancing into a new rate and term.
- Seeing how resetting to a new 30-year term versus keeping your remaining term affects both monthly payment and total interest.
Mistakes to Avoid
- Focusing only on the monthly savings number without checking total savings — resetting to a longer new term can lower your monthly payment while still increasing the total interest you pay over the life of the loan, even at a lower rate.
- Refinancing without checking the break-even point against how long you actually plan to stay in the home — if you\'ll move or sell before the break-even month, you may not recoup the closing costs at all.
- Treating closing costs as the only cost of refinancing — also consider any prepayment penalty on your current loan and the time and paperwork the process takes, which this calculator doesn\'t include.
Tips for Best Results
- If your primary goal is to save on total interest rather than just lower your monthly payment, try refinancing into the same remaining term (or shorter) rather than resetting the clock to a full new 30-year term.
- A break-even period under 24 months is generally considered favorable — if yours comes out much longer, weigh it carefully against how long you\'re likely to keep the loan.
Fixing Common Problems
My monthly payment dropped but my total savings came out negative. — This typically happens when the new loan resets to a longer remaining term than your current loan had left — even with a lower rate and payment, stretching the payoff over more months can increase total interest paid over the full loan life.
Terms Explained
Break-even point: The number of months it takes for monthly savings from refinancing to offset the upfront closing costs, found by dividing closing costs by monthly savings.
Closing costs: Upfront fees to originate the new loan, typically 2-5% of the loan amount, which offset some or all of a refinance\'s monthly savings until the break-even point.