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Find your refinance break-even point and calculate lifetime savings with a new rate.
Mortgage Refinance Calculator computes monthly savings as the difference between current and new PMT payments, divides closing costs by monthly savings to find break-even months, and compares total remaining interest on each loan to show lifetime savings or cost.
Enter your current mortgage details and the proposed new loan to find out exactly how many months until you break even on closing costs and how much you'll save (or lose) over the life of both loans.
Enter your current loan balance, rate, and remaining months
Input the new loan's rate, term, and closing costs
See your monthly savings, break-even point, and lifetime comparison
Check the warning if a new 30-year term resets your amortization
Current payment uses PMT formula on original balance at current rate over remaining term. New payment uses PMT on same balance at new rate and term. Monthly savings = current PMT − new PMT. Break-even = ceil(closing costs / monthly savings). Lifetime savings = (current PMT × remaining months − balance) − (new PMT × new months − balance) − closing costs. Users should also model the term-extension cost if refinancing into a longer loan.
Refinancing typically makes sense when you can lower your rate by at least 0.5–1%, you plan to stay in the home past the break-even point, and closing costs can be recouped within 2–3 years through monthly savings.
Closing costs typically run 2–5% of the loan amount — often $4,000–$10,000. They include lender fees, appraisal, title insurance, and prepaid items. Some lenders offer no-closing-cost refinances at a higher rate.
Break-even months = total closing costs ÷ monthly payment savings. For example, $6,000 in costs and $200/month savings = 30-month break-even. If you plan to stay longer than 30 months, refinancing makes sense.
Yes — if you refinance into a new 30-year loan, you extend your payoff date. This lowers monthly payments but often increases total interest paid. Refinancing into a 15 or 20-year loan avoids this trade-off.
Calculate when refinancing pays back its closing costs based on monthly savings.
Generate a full mortgage amortization schedule showing principal, interest, and balance for every year of your loan.
How much house can you afford? Uses the 28/36 lender rule with live mortgage rates.