Mortgage Refinance Calculator

See your new payment, monthly savings, break-even point, and lifetime interest difference before you refinance your mortgage.

How the mortgage refinance calculator works

Refinancing replaces your existing mortgage with a new one — usually to capture a lower rate, change the term, or both. This calculator prices both loans on your current balance: it amortizes the old loan over its remaining term at the old rate, then the new loan over its new term at the new rate, and compares the two monthly payments.

The headline number for most people is the break-even point: the closing costs divided by your monthly payment savings. If a refinance costs $4,000 and saves $200 a month, you break even in 20 months. Stay in the home past break-even and the refinance pays off; sell or refinance again before then and you lose money on the deal.

Watch the lifetime-interest line carefully. Resetting a loan you’re 3 years into back to a fresh 30-year term lowers the payment but can increase total interest even at a lower rate, because you’re paying interest for longer. The calculator shows interest-only difference separately from the break-even so you can see both effects.

How to use this calculator

Enter your current balance, interest rate, and the years left on your loan.
Enter the new rate you’re offered and the new loan term.
Enter your total closing costs (lender fees, title, and any discount points).
Press Calculate to see the new payment, monthly savings, break-even point, and lifetime interest difference.

Key terms

Break-even point: The number of months of payment savings needed to recoup your closing costs. Refinancing only pays off if you keep the loan past this point.
Closing costs: Up-front fees to refinance — origination, appraisal, title, and any discount points — typically 2–5% of the loan amount.
Discount points: Optional up-front fees (1 point = 1% of the loan) paid to buy down your rate. They raise closing costs but lower the monthly payment.

Tips

Only refinance if you’ll stay in the home well past the break-even point — otherwise the closing costs outweigh the savings.
Match the new term to your remaining term to compare apples to apples; a fresh 30-year loan flatters the monthly payment but stretches out interest.
A “no-cost” refinance just rolls the fees into the rate or balance — run those numbers here too, since the break-even math still applies.

Frequently asked questions

How do I calculate my refinance break-even point?

Divide your total closing costs by your monthly payment savings. For example, $5,000 in costs and $250 a month in savings gives a 20-month break-even. If you’ll keep the loan longer than that, the refinance saves you money overall.

Is it worth refinancing for a 1% lower rate?

Often, but not always. A 1% drop produces meaningful payment savings on a large balance, yet the break-even still depends on your closing costs and how long you’ll stay. Run your actual numbers — and check the lifetime-interest line if the new term is longer than what’s left on your current loan.

Does refinancing reset my loan term?

Yes, unless you choose a shorter term. Refinancing into a new 30-year loan restarts the amortization clock, which lowers your payment but means more years of interest. To avoid that, refinance into a term close to the years you have left.

What are typical mortgage refinance closing costs?

Closing costs usually run 2–5% of the loan amount and cover origination, appraisal, title, and recording fees, plus any discount points. On a $250,000 refinance that’s roughly $5,000–$12,500. Always compare a lender’s full cost estimate, not just the rate.

Should I pay points to lower my refinance rate?

Points make sense only if you’ll hold the loan long enough to recoup their cost through the lower payment — essentially a second break-even calculation. The longer you plan to stay, the more attractive buying down the rate becomes.

Will refinancing hurt my credit score?

A refinance triggers a hard inquiry and opens a new account, which can dent your score by a few points temporarily. Rate-shopping within a short window (typically 14–45 days) is usually treated as a single inquiry, so compare several lenders quickly.

Can I refinance with the same lender?

Yes, and they may waive some fees to keep your business — but don’t assume it’s the best deal. Get quotes from several lenders and compare the full closing costs and rate, then plug the numbers in here to see which break-even is shortest.

Planning further? Try the mortgage calculator or the loan payoff calculator.

Mortgage Calculator

Estimate your monthly mortgage payment, total interest cost, and full amortization schedule.

Loan Payoff Calculator

Find out when your loan will be paid off and how much interest extra monthly payments can save.