How to use the Refinance Calculator tool
3 simple steps · under a minute
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Enter your current loan
Type the balance, interest rate and years left on your mortgage.
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Enter the new loan
Add the new rate, the new term and the closing costs of refinancing.
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See if it pays off
Read your monthly savings, break-even time and lifetime savings after costs.
About Mortgage refinance calculator
Refinancing replaces your mortgage with a new one, usually to get a lower rate or a different term. This refinance calculator compares your current loan with the new offer, showing the change in monthly payment and the break-even point — the number of months until the savings cover your closing costs.
Be careful with resetting the clock: refinancing into a new 30-year loan can lower your payment but increase the total interest you pay. The lifetime savings figure accounts for this, so you can see whether a refinance truly saves money or just spreads the cost over more years.
Break-even point
Shows how many months of savings it takes to cover the closing costs.
Lifetime cost
Compares the total interest left on both loans, after closing costs.
Cash flow vs total cost
Reveals when a lower payment actually costs more over a longer term.
Frequently asked questions
When is it worth refinancing?
Often when you can cut your rate by around 0.75–1 percentage point or more, and you plan to stay in the home longer than the break-even period.
How is the break-even point calculated?
Break-even months = closing costs ÷ monthly savings. Stay in the home longer than that and the refinance pays off.
How much are closing costs?
Typically 2–5% of the loan amount, including lender fees, appraisal and title costs.
Should I refinance to a 15-year mortgage?
A 15-year loan usually has a lower rate and saves a lot of interest, but the monthly payment is higher. Try it in the calculator.
Is this financial advice?
No. Compare official loan estimates from lenders before deciding.