Mortgage Refinance Calculator
Compare your current mortgage payment with a new one to see if refinancing saves you money.
Enter your details below.
How to use
- Enter your remaining mortgage balance and your current rate.
- Enter the new rate, the years remaining, and the closing costs.
- Press Calculate to see both payments, the monthly saving and the break-even time.
About this tool
Refinancing replaces your remaining balance with a new loan, usually at a different rate. This calculator prices both loans with the standard formula over the years remaining: your old payment at the old rate, and the new payment at the new rate. The difference is your monthly saving, and dividing the closing costs by that saving gives the break-even point in months.
Frequently asked questions
What does break-even mean?
It is how many months of savings it takes to recover the closing costs. If you stay in the loan longer than that, refinancing comes out ahead; if you leave sooner, it may not.
Does a lower rate always mean refinancing is worth it?
No. If the saving is small and the closing costs are high, the break-even point may be years away, and fees or a shorter remaining term can wipe out the benefit.