Refinance Calculator
Estimate your new payment, monthly savings, closing costs, break-even time, and potential interest savings.
Current Loan
New Refinance Loan
This calculator is for estimates only. Actual refinance terms, fees, taxes, escrow, insurance, and lender rules may vary.
Enter values and click Calculate Refinance.
Payment Comparison
Current Payment$0.00
New Payment$0.00
Refinance Comparison Summary
| Item | Current Loan | New Refinance Loan |
|---|---|---|
| Loan Balance / Amount | $0.00 | $0.00 |
| Interest Rate | 0% | 0% |
| Monthly Payment | $0.00 | $0.00 |
| Estimated Remaining Interest | $0.00 | $0.00 |
| Estimated Total Remaining Cost | $0.00 | $0.00 |
Refinance Calculator: Estimate Monthly Savings, Break-Even, and Interest Saved
Use this guide with the refinance calculator above to compare your current mortgage with a new loan, estimate monthly savings, closing cost break-even, total interest saved, and long-term refinance value.
What Is a Refinance Calculator?
A refinance calculator is a mortgage comparison tool that helps estimate whether replacing your current loan with a new loan may save money. It compares the current monthly payment, new payment, closing costs, remaining loan term, new interest rate, and estimated break-even point.
Homeowners often use a refinance calculator before applying for a new mortgage because refinance savings depend on both monthly payment reduction and upfront costs.
How to Use This Refinance Calculator
Enter your current mortgage balance, current interest rate, remaining term, current monthly payment, new loan amount, new interest rate, new term, closing costs, and how long you plan to stay.
Enter Current Loan
Add your current balance, interest rate, remaining term, and current monthly payment.
Add New Loan Terms
Enter the new refinance loan amount, rate, term, and cash-out amount if applicable.
Include Closing Costs
Add lender fees, title fees, appraisal costs, points, and other refinance costs.
Review Refinance Results
See monthly savings, break-even point, interest saved, and stay-period benefit.
Refinance Break-Even Formula
One of the most useful refinance formulas is the break-even point:
If you plan to stay in the home longer than the break-even point, refinancing may be more useful. If you plan to sell or move before break-even, the refinance may not recover its upfront costs.
What This Refinance Calculator Shows
This calculator gives a practical refinance estimate using common mortgage comparison factors.
Current Monthly Payment
The payment you currently make on your existing mortgage.
New Monthly Payment
The estimated payment for the new refinance loan.
Monthly Savings
The difference between the current monthly payment and new monthly payment.
Break-Even Point
The estimated time needed for monthly savings to recover closing costs.
Interest Saved
The estimated difference between current remaining interest and new total interest.
Stay Period Benefit
The estimated savings during the time you plan to keep the home after closing costs.
Refinance Example
Suppose your current monthly mortgage payment is $1,950, and refinancing lowers it to $1,650. Your estimated monthly savings would be $300.
If closing costs are $6,000, the break-even point would be $6,000 ÷ $300 = 20 months. If you plan to stay longer than 20 months, the refinance may be worth reviewing further.
When Refinancing May Make Sense
Refinancing may make sense when a new loan lowers your interest rate, reduces monthly payment, shortens your loan term, changes an adjustable-rate mortgage into a fixed-rate mortgage, or helps consolidate costs in a way that fits your financial goals.
It may not make sense if closing costs are too high, break-even takes too long, the new term adds too much interest, or you plan to sell the home soon.
Why Break-Even Matters
A lower monthly payment can look attractive, but closing costs matter. The break-even point shows how long it may take for monthly savings to recover those upfront costs.
For example, if your refinance saves money each month but you move before reaching break-even, you may not actually come out ahead.
Refinance Planning Tips
Related Calculators and Trusted Refinance Resources
Continue planning with related mortgage calculators and trusted educational resources about refinancing, mortgage loans, interest rates, and homeownership.
Mortgage Calculator
Estimate monthly mortgage payment, taxes, insurance, PMI, and total cost.
Open Tool → Internal ToolMortgage Payoff Calculator
Estimate early payoff time and interest savings from extra payments.
Open Tool → Internal ToolAmortization Calculator
See how principal and interest change over your loan term.
Open Tool → Internal ToolHouse Affordability Calculator
Estimate the maximum home price you may be able to afford.
Open Tool →Learn More From Official Mortgage Sources
These external resources are provided for educational purposes and open in a new tab.
Refinance Guide
Learn about mortgage refinancing from the CFPB.
Visit CFPB → CFPBLoan Estimate
Understand costs and loan terms shown in a loan estimate.
Visit CFPB → HUDHome Buying
Review homeownership and housing information from HUD.
Visit HUD → IRSMortgage Interest
Read IRS information about home mortgage interest.
Visit IRS →Frequently Asked Questions
What is a refinance calculator?
A refinance calculator compares your current mortgage with a new loan to estimate monthly savings, break-even point, closing costs, interest saved, and long-term refinance benefit.
How do you calculate refinance break-even?
Refinance break-even is usually calculated by dividing closing costs by monthly savings.
When is refinancing worth it?
Refinancing may be worth reviewing when monthly savings, interest savings, or loan-term benefits are greater than the refinance costs and you plan to stay past the break-even point.
Does refinancing always save money?
No. Refinancing can increase total interest if the new term is longer, closing costs are high, or you move before reaching the break-even point.
Can this calculator guarantee refinance savings?
No. It provides estimates only. Actual refinance savings may vary based on lender fees, rate locks, credit profile, escrow, taxes, insurance, loan type, and closing terms.
Important Disclaimer
This refinance calculator is for educational and informational purposes only. It does not provide financial, mortgage, tax, legal, or real estate advice. Refinance results can vary by lender, borrower profile, interest rate, loan type, fees, escrow, closing costs, and market conditions.