Mortgage Refinance Calculator
Find out if refinancing saves you money — and how long until you break even on closing costs.
Current loan
Old vs New loan
How to use this calculator
Enter your current loan's remaining balance, interest rate, and years left. Then enter the new rate you've been quoted and the expected closing costs. The calculator instantly shows your monthly savings, break-even point, and total lifetime interest saved.
The break-even point is the most important number — it's how many months it takes for your accumulated monthly savings to equal your closing costs. If you plan to stay in the home longer than the break-even period, refinancing is worth it financially.
Should I refinance my mortgage?
Refinancing makes sense when three conditions align: your new rate is meaningfully lower, your closing costs are reasonable, and you plan to stay in the home past the break-even point. On a $280,000 balance, dropping from 7.5% to 6.5% saves about $170/month — at $5,000 in closing costs, you break even in roughly 29 months (about 2.5 years).
Watch out for resetting your loan term. Refinancing a 25-year remaining mortgage into a new 30-year extends your total payoff by 5 years. If you refinance into a 15-year term, your monthly payment may increase but you save dramatically on total interest — often six figures.
Frequently asked questions
Refinancing makes financial sense when the monthly savings exceed the closing costs within a timeframe you plan to stay in the home. The break-even point — closing costs divided by monthly savings — tells you how many months until you come out ahead. If you plan to stay longer than the break-even period, refinancing is likely worth it.
Refinancing typically costs 2–5% of the loan amount in closing costs. On a $300,000 balance, expect $6,000–$15,000 in fees including origination, appraisal, title insurance, and recording fees. Some lenders offer no-closing-cost refinances where fees are rolled into a slightly higher interest rate.
The old rule of thumb was to refinance when rates drop at least 1%. Today, even a 0.5% reduction can be worth it if your loan balance is large and you plan to stay in the home. What matters is the break-even period — use this calculator to find yours rather than relying on a fixed rule.
If you refinance into a new 30-year loan, yes — your clock resets. This lowers your monthly payment but means you pay interest for longer. To avoid this, consider refinancing into a shorter term (15 or 20 years). You can also make extra payments on a 30-year to pay it off faster while keeping flexibility.