Refinance Calculator
Compare your current loan with a refinance offer side by side. See your new payment, total interest savings, and the exact break-even point in months.
REFINANCE MAKES SENSE WHEN…
- Rate drops 0.75%+
- Break-even < 24 months
- You’ll stay 3+ years
- Consolidating high-rate debt
- Moving before break-even
Current Loan
Your existing mortgage/loan
Leave Current Payment blank to auto-calculate it from balance, rate, and term.
New Loan (Refinance)
Proposed refinance terms
COSTS & CASH-OUT
CURRENT LOAN
$1,767
per month
- Interest Rate
- 7.0%
- Remaining Term
- 25 years
- Total Interest Left
- $280,084
- Total Cost Left
- $530,084
NEW LOAN (REFINANCE)
$1,419
per month
- Interest Rate
- 5.5%
- New Loan Term
- 30 years
- Total Interest
- $261,010
- Total Cost (w/ fees)
- $511,010
14 mo
BREAK-EVEN
Months to recover costs
+$347
MONTHLY SAVINGS
per month reduction
+$14,074
LIFETIME SAVINGS
total interest difference
Refinancing Looks Worthwhile!
You save $347/month and break-even in 14 mo. As long as you stay in the loan beyond the break-even point, this refinance makes financial sense.
Cumulative Interest: Current vs Refinanced
- Current Loan
- Refinanced Loan
Should You Refinance Your Mortgage?
A refinance replaces your existing loan with a new one — usually to land a lower rate, change the term, or pull out equity in cash. This refinance calculator lines up your new monthly payment, total interest savings, and the critical break-even point: how many months until your savings outweigh the closing costs. For a full picture of your current or new payment, pair this with the mortgage calculator, mortgage payoff calculator, and amortization calculator.
Break-Even Formula
Example: $5,000 in closing costs ÷ $300/month savings = a break-even at roughly 16.7 months (about 17 months).
Plan to move or sell before that point and refinancing costs more than it saves. Stay in the loan longer than the break-even month, and every payment after it is pure savings.
When Refinancing Makes Sense
- Your rate can drop by 0.5–1%+ from where you are now.
- Your break-even lands under 24 months and you plan to stay.
- Switching from an ARM to a fixed rate for long-term certainty.
- Eliminating PMI because you’ve refinanced into 20%+ equity.
- Consolidating high-interest debt into a lower mortgage rate.
- Shortening your term to build equity faster.
When NOT to Refinance
- You’re planning to sell or move before the break-even point.
- The rate difference is under 0.5% — fees may not be worth it.
- Extending the term significantly, which adds more total interest.
- Your current loan carries a prepayment penalty that erodes the savings.
- You’re already far into the loan — most of the interest is behind you.
- Your credit score has dropped since you first qualified.
Typical Refinance Costs
- Application fee: $0–$500
- Appraisal: $300–$600
- Origination fee: 0.5–1.5% of loan amount
- Discount points: 1 point = 1% of loan
- Title search & insurance: $400–$1,000
Total typical cost runs 2–5% of the loan amount — on a $250K loan, expect roughly $5,000–$12,500. Always enter your actual quote into the calculator above.
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