Mortgage Refinance Calculator
Compare your loan to a new rate and see your monthly savings and break-even point.
A mortgage refinance calculator compares your current loan to a new one to show whether refinancing pays off. Enter your balance, current rate, new rate, and closing costs. It returns your new payment, monthly savings, and break-even month. Refinancing a $300,000 balance from 7.5% to 6.0% saves about $284 a month and breaks even in 18 months.
Should I Refinance Calculator
Load a preset to start, then edit any field with your own numbers.
Your current payoff balance. Typical range: 100,000–1,000,000.
The rate on your existing loan.
How many years remain on your existing schedule.
The rate you are being offered on the refinance.
Match your years left to compare fairly, or shorten the term to save more interest.
Advanced settings: closing costs
Lender and third-party fees for the new loan. Typical range: 2–5% of the balance.
Rolling costs in raises the new balance and payment but needs no cash at closing.
Please enter a balance and rates greater than zero.
Estimated monthly savings
Monthly savings = old payment − new payment
Break-even months = closing costs ÷ monthly savings
Break-even is when your savings have repaid the closing costs. After that, the savings are yours.
Show calculation breakdown
Payment Reduction
Monthly Payment: Current vs New
Smart Insights
Your personalized breakdown will appear here.
What Is a Mortgage Refinance Calculator?
A mortgage refinance calculator compares your current loan against a new one so you can see whether refinancing is worth it. It answers the two questions that matter: how much you save each month, and how long it takes for those savings to repay the closing costs.
Refinancing replaces your existing mortgage with a new loan, usually at a lower rate or a different term. It is not free, so the savings have to outrun the costs for it to make sense.
Who Uses a Refinance Calculator
- Owners whose rate is above today’s market checking whether to lock in a lower one.
- People who want to shorten their term and see the interest they would save.
- Anyone weighing closing costs against the monthly benefit.
To model the new loan on its own, including taxes and insurance, take the numbers to the mortgage calculator.
How the Refinance Calculator Works
You describe your current loan and the new offer, and the tool compares them.
- Enter your balance. Use your current payoff amount.
- Enter your current rate and years left. These set your existing payment.
- Enter the new rate and term. This is the offer you are considering.
- Add closing costs. Open Advanced settings to enter fees and choose whether to roll them into the loan.
The results show your monthly savings first, then your break-even point, and finally the lifetime interest difference. Each is calculated from the standard mortgage payment formula.
Reading the Break-Even Point
Break-even is the month when your accumulated savings equal the closing costs. Before it, you are still repaying the cost of refinancing. After it, the savings are pure benefit. If you plan to move before break-even, refinancing rarely pays.
Understanding Your Break-Even Point
The break-even point is the single most important number in a refinance decision. It tells you how long you must keep the loan for the refinance to be worth it.
The math is simple. Divide your closing costs by your monthly savings. Refinancing a $300,000 balance from 7.5% to 6.0% saves about $284 a month. With $5,000 in costs, that is a break-even near 18 months.
| Closing Costs | Monthly Savings | Break-Even |
|---|---|---|
| $5,000 | $284 | About 18 months |
| $5,000 | $150 | About 33 months |
| $8,000 | $284 | About 28 months |
The longer you plan to stay, the more a refinance pays. If you might sell within a couple of years, a long break-even is a warning sign.
When Refinancing Makes Sense
Refinancing is not automatically good just because rates fell. It depends on how much you save, what it costs, and how long you will stay.
- Your rate is well above market. A drop of three-quarters of a point or more usually justifies the costs.
- You will stay past break-even. The savings only count if you keep the loan long enough.
- You want a shorter term. Moving from 30 to 15 years can save large interest even if the payment rises.
- You want to drop PMI. If your equity has grown, a refinance can remove mortgage insurance.
Watch the term reset. Refinancing a 25-year-remaining loan into a fresh 30-year loan lowers the payment but can raise total interest. To see the new schedule, run it through the mortgage amortization calculator.
The Costs of Refinancing
A refinance carries most of the same fees as your original mortgage. They are the reason break-even exists.
Closing costs usually run 2% to 5% of the balance and cover the lender, title, and appraisal. You can pay them upfront or roll them into the new loan. Rolling them in avoids a cash outlay but raises your balance and slightly lowers your monthly savings.
No-Closing-Cost Refinances
Some lenders offer a no-closing-cost refinance. It is not free; the cost is built into a higher rate instead. That can be fine for a short hold but costs more over time. To estimate the fees before you commit, use the closing costs calculator.
Common Refinancing Mistakes
Ignoring the Term Reset
Refinancing into a fresh 30-year loan lowers the payment but can add years and interest. Match or shorten the term to keep your progress.
Chasing a Tiny Rate Drop
A small rate cut may not cover the closing costs before you move. Always check the break-even point, not just the new rate.
Rolling Costs In Without Noticing
Adding fees to the balance feels painless but raises what you owe and pay interest on. Know the trade before you choose it.
Forgetting You Reset the Clock
A new loan restarts amortization, so early payments are interest-heavy again. A lower rate helps, but the reset works against you.
Refinance FAQs
Is refinancing worth it?
It depends on your savings, costs, and how long you stay. If you keep the loan past the break-even point, refinancing usually pays. Below break-even, it does not.
What is a refinance break-even point?
It is the month when your monthly savings have repaid the closing costs. After that, the savings are yours to keep.
How much rate drop is worth refinancing?
A common guide is three-quarters of a point or more, but the real answer is whatever gives a break-even you will stay past.
Should I roll closing costs into the loan?
Rolling them in avoids paying cash but raises your balance and slightly lowers your savings. Paying upfront is cheaper if you have the cash.
Does refinancing restart my loan?
Yes. A refinance is a new loan with a new schedule. If you take a fresh 30-year term, the interest-heavy early phase starts again.
Can refinancing remove PMI?
Sometimes. If your equity has grown past 20%, a refinance into a conventional loan can drop mortgage insurance.
What is a no-closing-cost refinance?
The lender covers the fees in exchange for a higher rate. It saves cash upfront but usually costs more over the life of the loan.
Is this refinance calculator free?
Yes. There is no signup and nothing you enter leaves your browser.
Further Reading and Sources
The refinance math here is standard and exact. Use these primary sources to check the rules and current rates:
- CFPB Owning a Home explains refinancing, break-even, and loan shopping.
- Freddie Mac Rate Survey publishes weekly average mortgage and refinance rates.
- Fannie Mae documents refinance programs and eligibility.
Rates and fees change often. Confirm today’s offer and its full costs with your lender before refinancing.
Last updated August 22, 2026. This tool is provided for general informational and planning purposes only. It is not financial advice or a loan offer. Lifetime interest figures compare loans with different terms, so read them alongside the break-even point. Confirm all rates and fees with your lender before refinancing.
Creator
Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.
Areas of Expertise: Editorial Leadership, Digital Publishing, Product Strategy, Online Calculators, Web Standards
