Mortgage Refinance Calculator
Free mortgage refinance calculator. Compare your current loan to a new rate, see monthly savings, and find your break-even point in months.
Estimate whether refinancing your mortgage is worth it. Enter your current loan balance, rate, and remaining term, then enter the new rate, term, and estimated closing costs. The calculator shows your new monthly payment, monthly savings versus your existing loan, the break-even point in months (how long until savings recoup closing costs), and the projected lifetime interest difference. Results are illustrative estimates for personal planning — they do not include taxes, insurance, PMI changes, or lender-specific fees, and should not be treated as financial advice.
Calculator
Common use cases
- Deciding whether a rate drop justifies refinancing
- Comparing 30-year vs. 15-year refinance options
- Estimating how long until closing costs are recouped
- Evaluating cash-flow relief from a lower monthly payment
- Weighing monthly savings against total interest paid
How to use
- Enter your current mortgage balance and interest rate
- Enter the number of years remaining on your current loan
- Enter the new interest rate and term you're being offered
- Add estimated closing costs (typically 2–5% of the loan)
- Review monthly savings, break-even point, and lifetime difference
- Compare your break-even months to how long you plan to stay in the home
FAQ
How is the break-even point calculated?
Break-even months = closing costs ÷ monthly savings. It estimates how many months it takes for the lower payment to recoup what you spent to refinance.
What's a 'good' break-even?
A common rule of thumb is to refinance only if you'll stay in the home well past the break-even point. If you might move sooner, refinancing may cost more than it saves.
Why might lifetime interest go up even with a lower rate?
Extending your term (for example, restarting a 25-year loan as a new 30-year loan) stretches payments over more months, which can increase total interest even at a lower rate.
Does this include taxes, insurance, or PMI?
No. This calculator focuses on principal and interest only. Escrow items, mortgage insurance changes, and tax effects can shift the actual savings.
Is this financial advice?
No. Results are illustrative estimates for personal planning. Talk to a licensed mortgage professional before making a refinance decision.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.