Refinance Calculator
Adjust the inputs below. Results update as you type.
How it works
Monthly savings = old payment − new payment. Break-even months = closing costs / monthly savings. If you plan to move before break-even, refinancing may not pay off. Total savings = (old total remaining payments) − (new total payments + closing costs). Cash-out refinancing increases your principal—compare carefully. Rate/term refinancing that restarts a 30-year clock can cost more long-term despite lower payments.
Input guidance
- Use your current balance, rate, and remaining term from the latest statement.
- Enter the new rate and term you are shopping, including points/fees if financed.
- Include closing costs so break-even months are realistic.
The formula
Compare the new loan's payment and total cost against the old. The break-even point = closing costs ÷ monthly savings, in months — how long until the refinance pays for itself.
Worked example
Refinancing saves $200/month but costs $4,000 in fees: break-even = 4000 ÷ 200 = 20 months. If you keep the home longer than that, refinancing pays off.
More examples to test
- $320,000 balance at 7.0% with 26 years left vs 6.0% for 30 years: compare payment and interest.
- Same refinance with $4,000 closing costs: estimate months to break even.
How to interpret results
A lower payment is not always a win if you reset the term. Compare total interest and break-even against how long you will keep the loan.
When this can be inaccurate
Points, lender credits, escrow changes, and ARM resets can change the true refinance cost.
Change history
- July 2026: Published refinance break-even path with closing-cost guidance.
Site-wide corrections also appear on the corrections log.
Find your best refinance rate
Rates vary by credit score, loan type, and lender.
Frequently asked questions
When is refinancing worth it?+
When the monthly savings recoup the closing costs well before you plan to sell or pay off, and ideally when rates have dropped meaningfully.
Does refinancing reset the term?+
It can. Refinancing a 30-year loan into a new 30-year loan lowers the payment but can increase total interest by extending the timeline.
What are closing costs?+
Fees for appraisal, origination, title, and more — often 2–5% of the loan. They determine your break-even point on the refinance.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.
Guided next steps
Want the full workflow? Use this calculator inside a step-by-step guide.
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