Finance
Mortgage Refinance Calculator
Refinancing trades closing costs today for a lower payment tomorrow. Enter your current loan and the new rate and term to see the new payment, what you save each month, and how many months it takes to break even.
Quick answer: Refinancing pays off if you'll stay past the break-even point — closing costs divided by monthly savings. Below that, it costs more than it saves.
How it works
1. Compare the old and new payment
Enter your current loan balance, rate, and payment, then the new rate and term. The calculator shows the new monthly payment and how much it lowers your cost. A rate-and-term refinance swaps your existing loan for one with better terms.
2. Total the closing costs
Refinancing carries closing costs — typically 2% to 5% of the loan — including appraisal, origination, and title fees. These costs offset some of the savings, so a lower rate alone does not guarantee the move pays off. The calculator nets them against your monthly savings.
3. Find your break-even month
Divide the closing costs by your monthly savings to find how many months until the refinance pays for itself. If you plan to stay in the home past the break-even point, refinancing usually makes sense; if you might move sooner, it may not. The calculator reports the break-even in months.
Frequently asked questions
When is refinancing worth it?
When you'll stay in the home past the break-even point — closing costs divided by monthly savings. If you'll move before then, the refinance costs more than it saves.
Does a lower rate always mean savings?
Not necessarily. Resetting to a fresh 30-year term can lower the payment but raise total interest. Compare both the monthly payment and the lifetime interest.
What are typical closing costs?
Refinance closing costs commonly run 2–5% of the loan amount. Enter your actual estimate to get an accurate break-even.