Mortgage
Refinance Calculator
Compare your current mortgage with a new refinanced loan to see the monthly savings and how long it takes to break even on closing costs.
Enter your existing loan and a new rate to estimate the monthly payment change, the break-even point on closing costs, and whether refinancing is likely worth it.
Mortgage
Try the calculator
Advanced housing costs
Scenario presets
Quick compare
Example
Dropping from 7.5% to 6.1% can cut a few hundred dollars off the monthly payment, but closing costs may take a couple of years to recover.
Results
New monthly payment
$1,939.18
Monthly savings
$367.16
Break-even point
1 years 5 months
Projection
Trend view
Milestones
Decision cues
Breakdown
Cost mix
Result reading
The visual trend is moving down, with an approximate change of -$316,143 across the period shown.
Planning cue
Use the output as a scenario test rather than a promise. Small input changes can materially change the result.
Lifetime comparison assumes you keep each loan to the end of its term. Refinancing into a longer term can raise total interest even at a lower rate.
How it works
What the result is showing you
These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.
How refinancing math works
Refinancing replaces your current loan with a new one, ideally at a lower rate. The savings come from the smaller monthly payment, but you usually pay closing costs to get the new loan. The key question is how long it takes the monthly savings to repay those costs.
The break-even point
Break-even is closing costs divided by monthly savings. If you plan to stay in the home well past that point, refinancing often makes sense. If you may move or refinance again before then, the upfront cost may not pay off.
Watch the loan term
Resetting a 27-year balance into a fresh 30-year loan can lower the payment while quietly increasing total interest because you stretch the balance over more years. Compare lifetime interest, not just the monthly number.
FAQ
Frequently asked questions
Quick answers to the questions people ask most about this calculator.
What is a good break-even period for refinancing?
Many people look for a break-even under two to three years, but it depends on how long you plan to keep the home. The longer you stay past break-even, the more the refinance saves.
Does refinancing reset my loan term?
Usually yes. A new 30-year loan restarts the clock, which can raise total interest even at a lower rate. Choosing a shorter new term avoids that, though the payment savings will be smaller.
People also search for
Related tools
Other tools that usually come next
Use these if you want to compare a connected cost, adjust the budget around it, or check the next step in the same decision.
Mortgage
Mortgage Calculator
Estimate a mortgage payment, total interest cost, and the full monthly housing picture before you commit to a home price.
Mortgage
Mortgage Amortization Calculator
See a full year-by-year amortization schedule showing how each mortgage payment splits between principal and interest.
Mortgage
Extra Payment Mortgage Calculator
See how much interest you can save and how many years you can cut off your mortgage by adding an extra amount to each monthly payment.