Refinance Calculator
Estimate monthly savings and break-even time when refinancing a mortgage.
How this calculator works
How to use this calculator
Enter your current loan balance, current rate, remaining term, new rate, new term, and estimated closing costs. The calculator estimates monthly savings and break-even time.
Formula used
The calculator uses the standard fixed-payment mortgage formula to compare the current payment with the new payment. Break-Even Months = Closing Costs ÷ Monthly Savings.
Example calculation
For a $250,000 balance, 7% current rate, 25 years remaining, 6% new rate, 30-year new term, and $4,000 closing costs, the calculator estimates the monthly savings and break-even point.
What the result means
If monthly savings are positive, the break-even point shows how long it may take for savings to recover refinance costs. Total long-term cost may still change if the new term is longer.
Frequently asked questions
Does a lower monthly payment always mean refinancing is better?
No. A longer loan term can reduce monthly payment but increase total interest over time.
Does this include taxes and insurance?
No. It compares principal and interest only.
What if closing costs are rolled into the loan?
Add them to the new loan balance manually for a more conservative estimate.