Refinance Calculator
See if refinancing your mortgage makes sense — and when you'll break even.
Current Loan
New Loan
You save
$264.79/mo
💡 Plain English: Refinancing saves you $265/month. After 19 months, you'll have recouped the closing costs. After that, it's pure savings.
About the Refinance Calculator
Refinancing replaces your current mortgage with a new one — usually to get a lower interest rate, a different term, or to take cash out. This calculator helps you decide whether refinancing actually saves you money after accounting for closing costs.
How this calculator works
Enter your current loan balance, rate, and remaining term, plus the new rate and term you are considering, and an estimated closing cost. The calculator shows your new monthly payment, monthly savings, and how many months it takes to recoup the closing costs (the break-even point).
The math, in plain English
Monthly savings = old payment − new payment. Break-even months = closing costs ÷ monthly savings. If you plan to stay in the home longer than the break-even point, refinancing typically pays off.
Key terms
- •Refinance — replacing an existing loan with a new one
- •Break-even point — how long it takes for monthly savings to cover refinance costs
- •Closing costs — fees paid to finalize the new loan, often 2–5% of the loan amount
Tips & things to know
- ✓A lower rate only helps if you keep the loan long enough to pass the break-even point.
- ✓Shortening your term can save tens of thousands in interest even if the payment rises slightly.
- ✓Shop multiple lenders — refinance rates and fees vary significantly.
Frequently asked questions
Is refinancing worth it for a small rate drop?+
It depends on your closing costs and how long you will stay. The break-even calculation tells you exactly when the savings outweigh the costs.
Can I refinance to a longer term?+
Yes, extending the term lowers your monthly payment but usually increases total interest paid over the life of the loan.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.