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.
Cumulative savings vs closing cost
How you compare
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 payment = balance × r ÷ (1 − (1 + r)^−n). Monthly savings = current − new payment; break-even = closing costs ÷ monthly savings.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
Refinancing a $300k balance from $2,100 to a 5.5% payment saves ~$397/month, breaking even on $4,000 costs in 11 months.
Common mistakes
- Ignoring closing costs and the break-even month.
- Resetting to a fresh 30-year term and paying more total interest.
Where it is used
- Deciding whether refinancing is worth it.
- Finding the break-even point on closing costs.
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.
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