Money
Mortgage Refinance Calculator
Enter the current loan (balance, rate, remaining years) and the new loan (rate, term, closing costs). The calculator returns new vs current monthly payment, monthly savings, break-even months, and the lifetime interest comparison.
Current loan
e.g. 280000
e.g. 7.25
e.g. 25
New loan
e.g. 6.0
e.g. 30
e.g. 4500
Assumes the new loan refinances the current balance only. Cash-out refis or rolling closing costs into the loan change the math.
Monthly savings
$345.12
Break-even 14 months (~1.2 yr)
Estimate. Real refis include lender fees, points, escrow adjustments, and tax/insurance differences. Resetting to a longer term lowers monthly payment but can raise total interest. Plan the break-even time against how long you expect to stay in the home.
Examples
$280k at 7.25% / 25 yr → 6% / 30 yr, $4,500 closing
saves ~$235/mo · break-even ~19 mo
$200k at 6.5% / 20 yr → 5.5% / 20 yr, $3,000 closing
saves ~$118/mo · break-even ~25 mo
$350k at 7% / 25 yr → 6% / 15 yr, $5,000 closing
may increase monthly but cut total interest
How it works
The calculator amortizes both the current and new loans on the same balance. The difference in monthly payment is the savings (or increase). Dividing closing costs by monthly savings gives the break-even point.
Monthly payment · P × r × (1+r)^n ÷ ((1+r)^n − 1)
Break-even · closing ÷ monthly savings
Assumes the new loan refinances the current balance only (no cash-out, closing not rolled in).
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- Credit card payoff calculator for high-interest debt that may be a higher priority than refinancing.
- All money calculators.
Note. Estimate only. Real refis include lender-specific fees, escrow timing, possible PMI changes, and tax implications. Compare multiple Loan Estimates from different lenders before committing.
Frequently asked questions
Most commonly when the new rate is meaningfully lower than the current rate, and you plan to stay in the home long enough to recoup the closing costs. A common rule of thumb: refinance saves money if you'll keep the loan beyond the break-even point. Cash-out refis and term changes have their own logic.
Closing costs divided by monthly savings. If a refi costs $4,500 and saves $150/month, the break-even is 30 months. If you'll keep the loan longer than that, the refi saves money on net. Less than that, it costs you.
Yes, indirectly. The new monthly payment is lower if you stretch to a longer term, but lifetime interest can rise. The calculator shows total interest under both loans so you can see the trade-off. Many homeowners refi from 30-year to 15-year to cut total interest.
Lender fees vary widely (origination, points, appraisal, title). Property tax and insurance escrow adjustments depend on local rules and timing. Rolling closing costs into the loan increases the new balance and changes payment math. This calculator assumes you pay closing costs out of pocket and refinance only the current balance.
Probably not. If you'll be in the home less than the break-even period, the refi costs more than it saves. Compare break-even months against your time-in-home estimate before committing.
Cash-out refis withdraw equity by increasing the loan balance. This calculator does not model cash-out: it only compares an equivalent-balance refinance to your current loan. For a cash-out, add the withdrawal amount to your new balance and recalculate.
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