Mortgage Refinance Calculator
See your new payment after refinancing, how long it takes to recover closing costs, and lifetime interest saved.
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Quick Tip
Enter your current mortgage balance, not the original loan amount.
About This Tool
Why use Mortgage Refinance Calculator?
This refinance calculator answers the two questions that decide whether refinancing is worth it: how much the new payment saves each month, and how many months it takes for that saving to repay your closing costs. It also shows lifetime interest, which is where stretching the term back out can quietly cost you money.
Example: a $280,000 balance at 6.9% with 26 years left costs $1,933.10 a month. Refinancing to 5.75% over a fresh 30 years drops the payment to $1,634.06, a saving of $299.04 a month. With $5,200 in closing costs you break even in 18 months, and across the full term you still come out about $9,666 ahead after costs.
Key Benefits
Break-even in months
The single most useful refinance number: how long you must stay in the home before the refinance has paid for itself.
Lifetime interest, not just monthly
Resetting a 26-year loan to a fresh 30 years lowers the payment but adds years of interest. Both figures are shown so the trade-off is visible.
Closing costs included
Savings are shown net of what the refinance actually costs, rather than comparing payments alone.
How to use Mortgage Refinance Calculator
- 1
Enter your current mortgage balance, not the original loan amount.
- 2
Add your current interest rate and the number of years left on the loan.
- 3
Enter the new rate you have been quoted and the term of the new loan.
- 4
Add total closing costs, including lender fees, appraisal, title and any points.
- 5
Check the break-even month against how long you plan to stay in the home.
Best use cases
Decide whether a rate drop is large enough to justify refinancing.
Compare keeping your current term against resetting to 30 years.
Check whether you will stay in the home past the break-even point.
Work out whether paying points to buy the rate down is worthwhile.
How this tool compares
Mortgage Refinance Calculator FAQs
How much does the rate need to drop to make refinancing worth it?
The old rule of thumb was 1%, but the honest answer is whatever clears your break-even point comfortably before you plan to move or sell. On a large balance, even 0.5% can break even in under two years; on a small balance, a 1% drop may never repay the closing costs.
What is the break-even point on a refinance?
It is your total closing costs divided by your monthly saving. If a refinance costs $5,200 and saves $299 a month, you break even after 18 months. Stay longer than that and you are ahead; move sooner and the refinance lost you money.
Does refinancing to a new 30-year term reset my progress?
Yes. Restarting the clock means a larger share of each payment goes to interest again, and you pay for more total years. If you can afford it, refinancing into a term close to your remaining years captures the lower rate without extending the loan.
Should I roll closing costs into the loan?
You can, and it avoids cash up front, but you then pay interest on those costs for the life of the loan. A no-closing-cost refinance usually carries a higher rate instead — compare both in the calculator, since the higher rate often costs more over time.
Does a refinance hurt my credit score?
There is a small, temporary dip from the hard credit inquiry and from opening a new account, typically a few points that recover within months. Rate shopping across several lenders within a short window is usually treated as a single inquiry.
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