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Mortgage Refinance Calculator

Enter your current loan and the new offer. You'll get the monthly saving and how many months it takes closing costs to pay for themselves.

Current loan

New loan

How to read this

The calculator amortizes both loans on the same balance and compares them. Monthly savings is the payment difference.Break-even divides your closing costs by that saving.Lifetime interest difference nets the total interest of the old loan against the new one, minus closing costs — a positive number means the refinance saves money over its full life.

Worked example

You owe $300,000 with 25 years left at 7.5%; a new 25-year loan is offered at 6.0% with $6,000 in closing costs. The payment falls from about $2,217 to $1,933 — a saving of $284/month. Break-even is $6,000 ÷ $284 ≈ 21 months. If you'll stay in the home more than two years, this refinance clearly pays off, and it also saves a large amount of interest over the full term.

The two traps

See when refinancing makes sense for the full checklist.

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Frequently asked questions

What is the break-even point?
The number of months of payment savings it takes to recover your closing costs. If you plan to keep the home and loan past that point, refinancing tends to pay off; if you might move sooner, it may not.
Does a lower payment always mean a good refinance?
No. Restarting a 30-year clock at a slightly lower rate can lower the payment while increasing total interest because you are paying for longer. Check the lifetime interest difference, not just the monthly number.
What are typical closing costs?
Often 2 to 5 percent of the loan amount: lender fees, appraisal, title, and prepaid items. Some lenders offer 'no-cost' refis that roll the fees into a higher rate.
Should I refinance to a shorter term?
If you can afford the higher payment, moving from a 30- to a 15-year term at a lower rate can save a large amount of interest. Model it by setting the new term to 180 months.
How much of a rate drop makes a refinance worth it?
There's no fixed threshold. A 0.5% drop on a large balance with low closing costs can pay off; a 1.5% drop on a small balance you'll clear in three years may not. Run the break-even: closing costs divided by monthly saving. If you'll keep the loan well past that many months, it's usually worth it.
Can I refinance to get rid of PMI?
Yes, if your home has appreciated enough that the new loan is under 80% of its current value. This is one of the better non-rate reasons to refinance — it removes a cost that buys you nothing.
What is a 'no-cost' refinance?
The lender covers the closing costs in exchange for a slightly higher interest rate, or rolls the costs into the loan balance. There's no free lunch — you pay through the higher rate for the life of the loan — but it can make sense if you might move again soon.
Does refinancing reset my loan term?
It can. Refinancing a loan you're 8 years into back to a fresh 30-year term means paying for 38 years total. To avoid that, refinance into a term matching your remaining years, or keep making the old, higher payment on the new loan.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.