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FINANCIAL · REFINANCE

Refinance Calculator

See if refinancing makes sense — compare your current mortgage to a new loan, calculate your break-even point, and total savings.

Current Loan
New Loan

Upfront fees rolled into the break-even calculation

02 Result
Monthly Savings
$278.88
vs. current payment
Current payment$1,477.98
New payment$1,199.10
Break-even11 mo
Net savings$8,719.30
New interest: $231,677.04 · Interest saved: $11,719.30
Interest comparison: new total interest vs interest savings
CategoryAmountPercentage
New Total Interest$231,67795.2%
Interest Saved$11,7194.8%
Savings become positive after month 11
Cumulative net savings over time
PeriodCumulative Savings
Mo 6$-1,327
Yr 1$347
Yr 2$3,693
Yr 3$7,040
Yr 4$10,386
Yr 5$13,733
Yr 6$17,079
Yr 7$20,426
Yr 8$23,772
Yr 9$27,119
Yr 10$30,466
Yr 11$33,812
Yr 12$37,159
Yr 13$40,505
Yr 14$43,852
Yr 15$47,198
Yr 16$50,545
Yr 17$53,892
Yr 18$57,238
Yr 19$60,585
Yr 20$63,931
Yr 21$67,278
Yr 22$70,624
Yr 23$73,971
Yr 24$77,317
Yr 25$80,664
Yr 26$84,011
Yr 27$87,357
Yr 28$90,704
Yr 29$94,050
Yr 30$97,397

03Interest comparison

Refinance interest comparison
Current LoanNew Loan
Monthly Payment$1,477.98$1,199.10
Total Interest$243,396.34$231,677.04

About This Calculator

Determine whether refinancing your mortgage will save you money. Enter your current loan details and proposed new terms to see your monthly savings, total interest savings, and how long it takes to break even on closing costs.

How It Works

Enter your remaining loan balance, current interest rate, and months left on your existing loan. Then enter the new rate, new term, and any closing costs you will pay upfront. The calculator computes your new monthly payment, your monthly savings, how many months until your savings cover the closing costs (break-even), and your net lifetime savings after accounting for closing costs.

The Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1] Break-even = ⌈closing costs ÷ (current M − new M)⌉

M
monthly payment
P
remaining loan balance
r
monthly rate (APR ÷ 12)
n
term in months
Break-even
months until cumulative savings cover closing costs

Frequently Asked Questions

When does refinancing make sense?
Refinancing typically makes sense when you can lower your rate by at least 0.5–1%, plan to stay in the home past the break-even point, and the lifetime savings outweigh the closing costs.
What are typical refinance closing costs?
Closing costs usually run 2–5% of the loan balance and cover appraisal, title insurance, origination fees, and other lender charges. Some lenders offer no-closing-cost refinances with a slightly higher rate.
Should I extend my loan term when refinancing?
Extending the term lowers your monthly payment but increases total interest paid — you restart the amortization clock. Refinancing to a shorter term costs more per month but saves significantly on interest and pays off the loan sooner.