Refinance Calculator
Compare your current mortgage against a new loan to see the monthly payment change, lifetime interest difference, and how many months it takes for the savings to cover your closing costs. Know your break-even before you commit to a refinance.
How to Use
- Enter your current loan balance, interest rate, and remaining term in years.
- Enter the new loan's interest rate and term.
- Enter the estimated closing costs for the refinance.
- Read the current vs. new monthly payment and the monthly savings.
- Check the break-even point — closing costs ÷ monthly savings — to see how many months until the refi pays for itself.
Show Work
Rule of thumb
About the Refinance Calculator
Whether you are at a desk or on your phone, the Refinance Calculator makes personal-finance and money decisions easy — and it is completely free. Compare your current mortgage against a new loan to see the monthly payment change, lifetime interest difference, and how many months it takes for the savings to cover your closing costs. Know your break-even before you commit to a refinance.
How it works
Type your numbers into the boxes. The answer shows up right away — you do not have to press a button. If you change a number, the answer changes too. So you can try different numbers and watch what happens, or check an answer you worked out yourself. Just make sure each box has the right kind of number in it.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
What is the refinance break-even point?
It is the number of months it takes for your monthly payment savings to add up to the closing costs you paid to refinance. Divide total closing costs by the monthly savings. If you plan to keep the home and loan past that point, the refinance generally pays off; if you might sell or refinance again sooner, it may not.
Does a lower rate always mean I save money?
Not necessarily. A lower rate cuts your monthly payment, but if you restart the clock on a fresh 30-year term you can pay more total interest even at a lower rate. Closing costs also offset savings. Look at both the monthly change and the lifetime interest, and weigh them against the break-even.
What are typical refinance closing costs?
Refinance closing costs commonly run about 2%–5% of the loan amount and include the application, origination, appraisal, title, and recording fees. Some lenders offer "no-closing-cost" refinances that fold those fees into the rate or balance — convenient, but you still pay over time.
Should I refinance to a shorter term?
Refinancing from, say, 30 years into a 15-year term usually raises the monthly payment but can dramatically cut total interest and build equity faster. Use the new-term field to compare; make sure the higher payment fits your budget comfortably.
Is the break-even the only thing that matters?
No. Consider how long you will stay, whether you are tapping equity (cash-out), and the total interest over the life of each loan. This tool gives a quick estimate to frame the decision, not personalized financial advice.
How do I use the Refinance Calculator?
Just type your numbers. The answer shows up right away — there is no button to press. Change anything and it updates by itself.
Is it free? Does it work without internet?
Yes to both. It is free with no sign-up, and once the page has loaded it keeps working even with no internet.
Where does my data go?
Nowhere — every calculation runs on your own device. Nothing you enter is uploaded, logged, or stored.
Common Use Cases
Rate-and-term refinance
Check the monthly savings and break-even when refinancing to a lower rate on the same remaining term.
Shortening the loan term
Compare moving from a 30-year into a 15-year loan to see the payment increase against the interest saved.
Deciding if it is worth the costs
Enter realistic closing costs to confirm the break-even arrives before you expect to sell or move.
Evaluating a cash-out refinance
Model a larger balance and new term to understand the payment impact of pulling equity out.
Comparing lender offers
Run two quotes with different rates and closing costs to see which truly saves more over time.
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