HOME BUYING · ON YOUR DEVICE
Mortgage refinance calculator
Enter your current loan, a new rate and term, and the costs. See your monthly savings and when the refinance pays for itself.
EXAMPLE ESTIMATE
Your estimate
Enter your values and select Calculate.
Estimates use your assumptions. Calculations use unrounded values; displayed figures are rounded.
HOW IT WORKS
A useful estimate starts with clear inputs.
- Step 1
Enter your remaining balance, current rate and how many months are left.
- Step 2
Enter the new rate and term, plus closing costs, either paid upfront or added to the loan.
- Step 3
Calculate to see the new monthly payment, the break-even month and the change in total cost.
A 200 monthly saving with 4,000 of upfront closing costs breaks even after 20 months.
Calculation assumptions and limits
Both loans are fixed-rate with monthly payments and interest at the annual rate divided by 12. Break-even is upfront closing costs divided by the monthly saving. The total-cost comparison counts all remaining payments and upfront costs, so a longer new term can lower the payment but raise the lifetime cost. Escrow, mortgage insurance, points, cash-out, taxes and the time value of money are excluded.
Can I use this with my local currency?
Yes. All inputs in one calculation must use the same currency. The currency selector changes number formatting and labels; it does not look up exchange rates or convert your amounts. Local loan rules and products may calculate costs differently.
Are my numbers saved?
No. Your inputs and results stay in this page’s memory. Reloading or leaving clears them. Download the CSV or print the result if you want a copy.
Find out if refinancing really pays for itself
A lower rate does not automatically mean a good refinance. Closing costs, a longer new term and the time you expect to stay in the home all change the answer.
Enter your remaining balance, current rate and months left, then the new rate and term. Add closing costs that you pay upfront and any you add to the new loan. The calculator shows both monthly payments, the monthly saving, the break-even point and the change in total cost over the life of the loans.
Free to use. No sign-up required.
How to use this tool
- Enter your remaining balance, current rate and months left.
- Enter the new rate and term and any closing costs.
- Calculate to see the monthly saving, break-even month and lifetime cost change.
A practical example
A 200 monthly saving with 4,000 of upfront costs breaks even after 20 months.
Before you finish
If you may move before the break-even month, the refinance may not pay off. Watch the total-cost line if the new term is longer.
The three numbers that decide a refinance
First, the monthly saving: the difference between your current payment and the new one. Second, the break-even point: how many months of saving it takes to repay the upfront closing costs. Third, the lifetime cost: total payments on each loan, including closing costs. A good refinance usually improves all three, or you have a clear reason to accept a worse one, such as a lower payment during a tight period.
The long-term trap
If you refinance 20 years of remaining balance into a new 30-year loan, the rate may fall while the extra ten years add interest. The payment looks better, and the total cost can look worse. The comparison table shows total interest and total cost side by side so the trade-off is visible. Choosing a new term close to your remaining term avoids the trap.
Paying costs upfront or financing them
Paying closing costs in cash keeps the new loan smaller and the interest lower, but needs savings. Adding them to the loan avoids a cash payment but means you borrow and pay interest on them. Enter either or both and compare how the monthly payment and total cost change.
Before you apply
Ask lenders for a written Loan Estimate and compare the same loan type and term. Check how long you expect to stay in the home against the break-even point. For a purchase rather than a refinance, the mortgage calculator includes tax and insurance.
Frequently asked questions
What is the break-even point?
It is the number of months it takes for the monthly saving to repay your upfront closing costs. If you will move or sell sooner, the refinance may cost more than it saves.
Why might a refinance cost more in total?
A new 30-year loan resets the term. The payment can fall while you pay interest for more years. The total-cost comparison shows this.
What is the difference between upfront and financed costs?
Upfront costs are paid in cash at closing. Financed costs are added to the new loan, so you borrow them and pay interest on them.
Does it include cash-out or points?
No. Enter any points as closing costs. Cash-out refinancing is not modelled.
Are taxes and insurance included?
No. Only principal and interest are compared, because escrow items usually stay similar after a refinance.
Is a lower rate always worth it?
No. The saving has to outweigh the costs within the time you will keep the loan, and a longer term can raise the lifetime cost.