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Refinance Calculator

Decide whether refinancing is worth it. Enter your current balance, rate and years remaining, then the new rate, term and closing costs. The calculator shows the change in monthly payment, how many months it takes for the savings to repay the costs, and the difference over the whole life of both loans.

Quick examples
$
%
years
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Typically 2–5% of the loan.

Your numbers stay in your browser. Nothing is uploaded.
Monthly savings$265.43
Current payment
$2,112.58
New payment
$1,847.15
Break-even
22.6 months
Lifetime savings
$13,501.99

Saved setups

Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.

    Your recent calculations

    Results you calculate here are kept on this device so you can come back to them.

      Formula

      Current payment = balance × r ÷ (1 − (1 + r)^−n) at the current rate over the months remaining
      New payment = the same formula at the new rate and new term
      Break-even months = closing costs ÷ monthly savings
      Lifetime savings = remaining payments on the current loan − all payments on the new loan − closing costs

      How to use it

      1. Enter what you still owe, your current rate and the years left.
      2. Enter the new rate and term you have been quoted.
      3. Enter the closing costs and whether you will pay them upfront or add them to the loan.
      4. Compare the break-even point with how long you expect to keep the home.

      Worked examples

      A $300,000 balance at 7.25% with 27 years left, refinanced to 6.25% for 30 years with $6,000 in costs

      Monthly savings
      $265.43
      Current payment
      $2,112.58
      New payment
      $1,847.15
      Break-even
      22.6 months
      Lifetime savings
      $13,501.99

      A $250,000 balance at 6.75% with 26 years left, refinanced to a 15-year loan at 5.75% with $5,000 in costs

      Monthly savings
      -$374.04
      Current payment
      $1,701.99
      New payment
      $2,076.03
      Lifetime savings
      $152,335.25

      The two questions to ask

      First, will you stay past the break-even point? If closing costs are $6,000 and you save $265.43 a month, you break even after about 23 months; move before then and the refinance loses money.

      Second, what happens to the total cost? Restarting a 30-year clock lowers the payment partly by stretching the debt, so a refinance can cut the monthly bill and still cost more overall. The lifetime figure shows this: a negative number means you pay more in the long run.

      Shortening the term

      Refinancing into a 15-year loan usually raises the payment but slashes total interest. Moving $250,000 from 6.75% with 26 years left to a 15-year loan at 5.75% adds $374.04 a month and saves about $152,335 overall. Results are estimates and exclude taxes, insurance and any change in PMI.

      Questions people ask

      How much does a 1% lower rate save on a mortgage?

      On a new $300,000 30-year loan, 6% instead of 7% saves $197.26 a month in principal and interest.

      How do I calculate the refinance break-even point?

      Divide closing costs by the monthly savings. $6,000 ÷ $265.43 is 22.6 months.

      Is it worth refinancing for a lower payment if I extend the term?

      Sometimes. Going from 7.25% with 27 years left to 6.25% for 30 years on $300,000 saves $265.43 a month and, even after $6,000 of costs and three extra years, $13,501.99 overall.

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