Mortgage Refinance Calculator

See if refinancing saves you money.

Enter your numbers and press Calculate.

About the Mortgage Refinance Calculator

Refinancing replaces an existing mortgage with a new one, usually to lower the interest rate, change the term, or both. This calculator compares the current payment with the new payment and estimates a break-even point where accumulated monthly savings offset the closing costs.

Whether refinancing helps depends on how long you keep the new loan. Leaving before the break-even point generally means the closing costs were not recovered.

How this works

Savings = current PMT − new PMT; break-even = closing costs ÷ monthly savings.

Assumptions

Both loans use fixed rates and level payments.
Closing costs are paid up front.
You stay in the home for the full new term.

Frequently asked questions

What is the break-even point?

The number of months of payment savings needed to cover the upfront cost of refinancing. Past that point, the savings are net positive if you keep the loan.

Does refinancing restart the loan term?

It can. Refinancing a 20-years-remaining loan into a new 30-year loan lowers the payment but extends repayment and can raise total interest.

Are there costs beyond the interest rate?

Yes — origination fees, appraisal, title, and other closing costs, which the break-even calculation accounts for.

Related tools

Mortgage Calculator

Estimate your monthly mortgage payment.

Home Affordability Calculator

How much house can you afford?

Rent vs Buy Calculator

Compare renting to owning.

This calculator provides estimates for educational purposes only and is not personalized financial advice. Rates, taxes, and financial products change — verify with providers and qualified professionals.