Mortgage Refinance Calculator
See whether refinancing pays off. Enter your loan balance, current payment, the new rate and term, and closing costs to find your monthly savings and break-even month.
Example: with Current loan balance $300,000 · Current payment (P&I) $2,100 · Current interest rate 6.9% · Remaining term 25 yrs → Monthly savings: $396.63.
- New payment$1,703.37
- Break-even11 months
- Net savings over 5 yrs$19,798
Computed by the calculator below using its default values. Change any input to see your own numbers.
Cumulative savings vs closing cost
How you compare
Your NEW rate vs. the market
Break-even & savings
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Get quotesWhen refinancing makes sense
Refinancing replaces your loan with a new one, ideally at a lower rate. The catch is closing costs — divide them by your monthly savings to get the break-even month. If you'll stay in the home past that point, refinancing usually pays off. Resetting to a fresh 30-year term lowers the payment but can raise total interest, so weigh both.
How it’s calculated
New loan amount = current balance + cash-out + (closing costs, only if you choose to roll them into the loan). New payment = new loan amount × r ÷ (1 − (1 + r)^−n). Monthly savings = current payment − new payment. If you pay closing costs upfront in cash, break-even = closing costs ÷ monthly savings; if you finance them, there's no upfront cost to recoup so break-even is immediate, though the extra financed amount raises the new payment. Lifetime interest compares total interest left on your current loan (at its rate and remaining term) to total interest on the new loan over its full term — a wider net or longer new term can increase this figure even when the monthly payment drops.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Common mistakes
- Ignoring closing costs and the break-even month.
- Resetting to a fresh 30-year term and paying more total interest.
Frequently asked questions
What is the break-even point?
The month when accumulated savings finally cover your closing costs. Stay past it and the refinance is worthwhile.
Does a lower rate always help?
Not if you move before break-even or stretch the term so far that total interest rises. Check both the monthly savings and the payoff timeline.
Are closing costs negotiable?
Sometimes. Lenders may offer 'no-cost' refinances that bake fees into a higher rate — compare the true cost.
Should I finance closing costs or pay cash?
Financing them (rolling them into the loan) skips the upfront cash but means you pay interest on those costs for the life of the loan, which can raise your lifetime interest even though there’s no break-even wait.
What does a cash-out refinance change?
Adding a cash-out amount increases your new loan balance, which raises the new payment and total interest — it’s a way to borrow against home equity, not just to lower your rate.