Free Refinance Calculator

How to Use This Refinance Calculator

Enter your current loan balance, current interest rate, and remaining term. Then enter the new rate, new term, and estimated closing costs for the refinance. Tap CALCULATE to instantly see how much you'll save per month and how long it takes to break even on the closing costs.

What is a Refinance Calculator?

A refinance calculator compares your existing mortgage to a potential new loan. It shows you the difference in monthly payment, the total interest you'll pay over the life of each loan, and the break-even point — the number of months it takes for your monthly savings to cover the closing costs of refinancing.

Refinancing makes sense when the new rate is significantly lower than your current rate and you plan to stay in the home long enough to pass the break-even point.

Understanding the Break-Even Point

The break-even point is how many months it takes for your monthly savings to pay back the closing costs. For example, if closing costs are $4,000 and you save $200/month, your break-even is 20 months. If you plan to stay in your home longer than that, refinancing likely makes financial sense.

Keep in mind that choosing a longer loan term (e.g. refinancing back to 30 years) may lower your monthly payment but increase the total interest you pay over time.