Refinance Calculator
New payment, monthly saving and break-even on closing costs when refinancing.
About this tool
Enter your current balance, rate and months remaining, then the new rate, new term, closing costs and any cash you want to take out. Choose whether to pay the costs upfront or add them to the loan. The calculator compares the payments, shows the monthly change and break-even point, the interest left under each loan and the difference in total payments.
How to decide whether to refinance
Refinancing replaces your mortgage with a new one, usually to get a lower rate, change the term or release equity. Start with the monthly saving, then divide the closing costs by it to get the break-even point. In the example, moving a 280,000 balance from 7.25% to 6.25% lowers the payment from about 1,972 to about 1,724, saving roughly 2,970 a year. That recovers 5,500 of costs in about 22 months, so if you stay longer than that you come out ahead. Watch the term. Restarting a 30-year clock on a loan with 27 years left lowers the payment partly by stretching it out, which can mean paying more interest in total even at a lower rate. The total-paid comparison shows that trade-off, and choosing a shorter new term avoids it. Taking cash out or adding the costs to the loan increases what you owe. Honest limits: lenders price fees, points and rates differently, and some charge early repayment penalties on the old loan, so compare full loan estimates. Not financial advice. The mortgage calculator, the mortgage points calculator and the loan comparison calculator help with the details. How mortgage amortization works, and why overpaying early matters explains why early payments are mostly interest.
Frequently asked questions
When does refinancing make sense?
When the monthly saving recovers the closing costs well before you expect to move or refinance again, and the total cost over the new term is acceptable.
How do I calculate the refinance break-even point?
Closing costs รท monthly saving. 5,500 รท 248 โ 22 months.
Does refinancing to a new 30-year term cost more?
It can. A longer term lowers the payment but spreads interest over more years, so compare total payments, not just the monthly figure.
Is my data saved?
No. The calculation runs in your browser and nothing is stored or sent.