Mortgage Refinance Calculator
Check if refinancing makes sense. Compare your payment now with a new rate and see how long it takes to recover the closing costs.
When to use this calculator
Use this calculator to decide if refinancing is worth it. It compares your current payment with a new one, then divides the closing costs by the monthly saving to show how long you must stay in the home for the refinance to pay off.
Example refinance results
How this calculator works
We calculate the payment on your current balance at your current rate and remaining term, then the payment on the same balance at the new rate and term. Break-even is closing costs divided by monthly savings. The total cost difference compares all payments on the old loan to all payments plus closing costs on the new one. Taxes and insurance are not included.
Step-by-step example
Using these inputs: Current loan balance ($): 300000; Current rate (%): 7; Years left on current loan: 27; New rate (%): 6; New loan term (years): 30; Closing costs ($): 6000.
On a $300,000 balance, moving from 7% with 27 years left to 6% over 30 years lowers the payment from $2,063 to $1,799, a saving of $265 a month. With $6,000 of closing costs, you break even in about 23 months.
Tips for a better estimate
- Do not look only at the monthly saving. Starting a new 30-year loan can raise the total interest even if the payment falls.
- Plan to stay in the home longer than the break-even period.
- Compare lender quotes. Closing costs differ and can be negotiated.
FAQ
When does refinancing make sense?
When you will stay in the home longer than the break-even time and the lower rate is meaningful.
Does a longer new term cost more?
Resetting to 30 years can lower the payment but add interest overall. Compare the total cost row.
Are closing costs rolled in?
Here they are paid up front. If you add them to the loan, your payment will be slightly higher.
When does refinancing make sense?
When the new rate is meaningfully lower, you will stay past the break-even point, and the closing costs are reasonable.
What is break-even?
The number of months it takes for your monthly savings to cover the closing costs.
Can I roll closing costs into the loan?
Often yes, but then you borrow and pay interest on them. Ask your lender to show both options.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.