Refinance Calculator — Calculate Your Refinance Savings

How to Use the Refinance Calculator

This mortgage refinance calculator compares your current loan against a potential new loan so you can decide whether refinancing makes financial sense. Enter your current loan balance, current interest rate, and remaining term, then enter the terms of the new loan you're considering — new interest rate, new loan term, and estimated closing costs.

The calculator immediately shows your current monthly payment side by side with your new monthly payment, your monthly and annual savings, total interest saved over the life of the new loan, and — most importantly — your break-even point in months, which tells you exactly when your savings will have paid back your closing costs.

What Affects Your Refinance Savings?

• The rate difference between your current loan and the new loan is the single biggest driver of monthly savings. Even a 0.5-1% reduction can meaningfully lower your payment.
• Remaining balance — refinancing a larger balance produces bigger dollar savings from the same rate reduction.
• New loan term — resetting to a new 30-year term lowers monthly payments the most but can increase total interest paid if you've already paid down years of your original loan. Choosing a shorter new term increases the payment but saves more on interest overall.
• Closing costs directly determine your break-even point — higher costs mean it takes longer for your savings to catch up.

How Your Break-Even Point Is Calculated

This refinancing calculator compares your current monthly payment to your new monthly payment to find your monthly savings, then divides your closing costs by that monthly savings to estimate how many months it takes to break even. Both payments are calculated using each loan's own balance, rate, and term, and total interest saved is found by building a full amortization schedule for both the current and new loan and comparing the total interest paid across their respective terms.

Tips Before You Refinance

• Shop multiple lenders — refinance rates and closing costs vary significantly between lenders.
• Factor in how long you plan to stay in the home relative to your break-even point.
• Consider a cash-out refinance carefully, since it increases your loan balance even if the rate is lower.
• Check whether your current loan has a prepayment penalty before refinancing.
• If your goal is purely to pay off your home faster, compare refinancing against simply making extra payments on your current loan.