Skip to content

Refinance Calculator

See if refinancing a mortgage or loan pays off: monthly saving, break-even and total cost.

Result

Enter your values and select Calculate to see the result.

Runs in your browser — nothing you enter is sent to a server.

How the Refinance Calculator works

Enter what you still owe, your current rate and the years left, then the new rate, the new term and the closing costs. The calculator compares the remaining payments on your current loan with the new loan for the same balance: the monthly saving, how many months it takes for those savings to repay the closing costs, and the total saved (or lost) over the whole loan.

Formulas

Break-even

months = closing costs ÷ (current payment − new payment)

Total saving

current payments left − (new payments + closing costs)

Examples

One percentage point lower

$200,000 with 25 years left: from 6.5% ($1,350.41 a month) to 5.5% ($1,228.17) saves $122.24 a month. $4,000 of closing costs are repaid in 33 months, and about $32,672 is saved in total.

A longer term

Refinancing to 30 years at 6% lowers the payment, but paying for five more years costs more in total than keeping the current loan.

Frequently asked questions

When is refinancing worth it?

When you will keep the loan longer than the break-even period, and the total cost falls — not only the monthly payment.

What are closing costs?

Fees for the new loan: arrangement or origination fees, valuation, legal work and sometimes an early repayment charge on the old loan.

Can I keep the same payoff date?

Yes — set the new term to the years left on your current loan, as in the first example.

Related tools

Mortgage Calculator

Estimate your monthly mortgage payment with down payment, property tax, home insurance and HOA fees.

Finance Tools