🔄 Mortgage Refinance Calculator
Compare your current mortgage with a refinance: new monthly payment, monthly savings, break-even point, and total interest.
How the Mortgage Refinance Calculator Works
Refinancing replaces your current mortgage with a new loan, usually to change the interest rate, the term, or both. This calculator works out the payment on your remaining balance under the current loan and under the new loan, then compares them. Closing costs can be paid upfront or added to the new loan balance.
The break-even point is how many months of lower payments it takes to recover the closing costs; keeping the home longer than that is when a lower payment starts to outweigh the upfront cost. The calculator also compares the total you would still pay under each option, because extending the term can lower the monthly payment while increasing the total interest paid. Taxes, insurance, and escrow are not included.
Formula
Payment = Balance × i ÷ (1 − (1 + i)^−n), i = annual rate ÷ 12 Monthly savings = current payment − new payment Break-even (months) = closing costs ÷ monthly savings Total remaining cost = payment × number of payments (+ closing costs if paid upfront)
How to Use It
- Enter your current loan balance, rate, and months remaining.
- Enter the new rate and new term.
- Enter closing costs and choose whether to pay them upfront or add them to the loan.
- Compare the payments, the break-even month, and the total remaining cost.
Frequently Asked Questions
How do I know if refinancing saves money?
Compare the break-even point with how long you expect to keep the loan, and compare the total remaining cost of both options. A lower monthly payment alone can hide higher total interest if the term is extended.
What is the refinance break-even point?
It is the number of months it takes for monthly savings to add up to the closing costs: closing costs ÷ monthly savings.
Should closing costs be rolled into the loan?
Rolling them in avoids paying cash upfront but increases the loan balance, so you pay interest on the costs. The calculator shows both options so you can compare.
Does refinancing reset the loan term?
It can. A new 30-year loan on a mortgage with 22 years left adds 8 years of payments; choosing a shorter new term avoids this.
Related Glossary Terms
Related Calculators
- 🏠 Mortgage Calculator — Estimate your monthly mortgage payment including taxes, insurance, and PMI.
- 🎯 Mortgage Points Calculator — See what discount points cost, how much they save each month, and the break-even point.
- 📅 Amortization Schedule Calculator — See your full year-by-year loan breakdown and what an extra payment saves.
- 🏡 Closing Costs Calculator — Estimate the one-time costs due when you close on a home purchase.
Formula and content last reviewed: September 2026. All calculations run in your browser — nothing you enter is sent to or stored on our servers.
Guide: understanding your result
- Break-even = closing costs ÷ monthly savings. Refinancing pays off only if you keep the loan past that point.
- Restarting a 30-year term can lower the payment while increasing total interest.
- Closing costs commonly run a few percent of the loan amount; your Loan Estimate lists them.
Worked example
A homeowner owes $300,000 with 27 years left at 7.5% ($2,162.20/month) and refinances into a new 30-year loan at 6.76% ($1,947.79/month) with $6,000 in closing costs.
- Monthly saving: $214.41
- Break-even: 28 months
- Total remaining payments: $700,553 before vs $707,204 after (including costs)
Common mistakes to avoid
- Comparing payments without accounting for the extra years added by a new 30-year term.
- Ignoring closing costs that are rolled into the new balance.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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See all →✔ Reviewed by GelirLab Editöryal Ekibi · Last reviewed: September 2026 · How we check our calculators