Refinance Calculator
Refinance calculator: compare your current mortgage to a new rate and term, see monthly savings and the break-even month.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Updated
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Current payment
- $1,925.88
- New payment
- $1,678.74
- Break-even point
- 2 yr 0 mo
- Lifetime savings after closing costs
- $13,639
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Current loan balance
- 280000 $
- Current interest rate
- 7 %
- Years left on current loan
- 27
- New interest rate
- 6 %
- New loan term
- 30 years
- Closing costs
- 6000 $
Results
- Monthly payment savings
- $247.14
- Current payment
- $1,925.88
- New payment
- $1,678.74
- Break-even point
- 2 yr 0 mo
- Lifetime savings after closing costs
- $13,639
How does the Refinance Calculator work?
Both payments use the standard loan formula on your current balance: the old one over your remaining term and the new one over the new term at the new rate.
Break-even months = closing costs ÷ monthly savings. If you will move or sell before that month, refinancing costs more than it saves. Lifetime savings compare total payments on both loans minus closing costs.
Frequently asked questions
When does refinancing make sense?
When you will stay in the home past the break-even month and the new rate or term lowers your total cost or fits your budget better.
Why can lifetime savings be negative?
Restarting a 30-year term can lower the payment while adding years of interest, so total cost may rise even with a lower rate.
What are typical closing costs?
Often 2% to 5% of the loan amount, covering lender fees, appraisal, title and recording.
Can I roll closing costs into the loan?
Often yes, but you then pay interest on them. Enter them here as a cost to see the break-even point either way.