Compare your current loan with a new one to see monthly savings, break-even time and total savings.
Net savings compares total payments plus remaining balance after your stay, including closing costs and any cash-out received.
Please do not make financial decisions based on these results.
What is the Refinance Calculator?
A refinance calculator compares your current loan with a new rate and term. It shows the new payment, the closing costs and how many months it takes to recover them.
What refinancing really changes
Refinancing replaces your current loan with a new one, usually to get a lower rate, a different term or cash from your equity. A lower rate can reduce the payment and the total interest, but the new loan resets the clock and comes with closing costs.
The break-even point
The key number is the break-even time: closing costs divided by the monthly savings. If you expect to keep the home longer than that, refinancing can pay off. If you might move sooner, the savings may never cover the costs.
Also compare total interest over the full life of each loan. Stretching a loan back to 30 years can lower the payment while increasing the total you pay.
Compare before you decide
Enter your current balance, rate and remaining term, then the new rate, term and fees. Look at the monthly payment, the break-even month and the interest difference together rather than focusing on one number. To see the effect of paying extra on the loan you already have, use the mortgage payoff calculator; to see a full new schedule, use the amortization calculator. If you want to borrow against your equity instead, see the home equity loan calculator.
How to use the Refinance Calculator
- Enter your numbers. The inputs are Current loan balance ($), Current interest rate (%), Remaining term: years, New interest rate (%), New loan term: years, Closing costs ($), Years you plan to keep the loan. Use figures from a lender quote or your tax bill where you have them, and keep the term and rate realistic. Fields marked optional can stay at zero.
- Choose your options. Closing costs are… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Monthly savings, and the cards below show Current payment, New payment, New loan amount. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Refinance Calculator using the default values shown in the calculator above:
Inputs
| Current loan balance ($) | 280,000 |
|---|---|
| Current interest rate (%) | 7.25 |
| Remaining term: years | 26 |
| New interest rate (%) | 6 |
| New loan term: years | 30 |
| Closing costs ($) | 5,000 |
| Closing costs are… | Paid upfront |
| Years you plan to keep the loan | 7 |
Results
| Monthly savings | $317.78 |
|---|---|
| Current payment | $1,996.52 |
| New payment | $1,678.74 |
| New loan amount | $280,000.00 |
| Refinance costs | $5,000.00 |
| Break-even | 16 months (1 yr 4 mo) |
| Remaining interest (current) | $342,914.42 |
| Total interest (new loan) | $324,346.93 |
| Net savings over 7 yrs | +$17,471.21 |
With these inputs the calculator returns Monthly savings: $317.78. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Refinance Calculator reports Monthly savings, current payment, new payment, new loan amount, refinance costs, break-even and remaining interest (current). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
When does refinancing pay off?
When you keep the new loan longer than the break-even time.
What is a good break-even period?
If you will keep the home longer than the break-even months, refinancing saves money. Many people look for 24 months or less.
How much house can I afford?
A common rule is to keep housing costs under about 28% of gross income and total debt under 36%. The House Affordability Calculator applies those limits to your numbers.
What is included in a monthly mortgage payment?
Principal and interest, plus property tax, homeowners insurance, PMI if your down payment is under 20%, and HOA fees if they apply.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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