Current Loan
Enter term in months (e.g., 360 for 30 years)
New Loan
Enter term in months (e.g., 360 for 30 years)
Typically 2-5% of loan amount
Loan Comparison
| Current | New | |
|---|---|---|
| Interest Rate | 6.5% | 5.5% |
| Monthly Payment | $1,580 | $1,448 |
| Loan Term | 25 years | 30 years |
| Total Cost | $474,000 | $526,230 |
Refinancing May Not Be Beneficial
While your monthly payment is lower, extending the loan term means you'll pay more in total interest over the life of the loan.
How to Use the Refinance Calculator
- 1
Enter your current loan details
Input your remaining mortgage balance, current interest rate, monthly payment amount, and how many months are left on your existing loan. You can find this information on your most recent mortgage statement. - 2
Add new loan terms
Enter the new interest rate you have been offered or are targeting, the desired loan term in months, and the estimated closing costs. Your lender can provide a Loan Estimate with these figures, or you can estimate closing costs at 2-5% of the loan balance. - 3
Review the comparison results
The calculator instantly compares your current and new loan side by side, showing your new monthly payment, monthly savings, total interest savings over the full loan term, and the total cost of each loan scenario. - 4
Check the break-even point
The break-even analysis shows exactly how many months it takes for your monthly savings to recoup the closing costs. If you plan to stay in your home longer than the break-even period, refinancing is likely a smart financial move.
When Refinancing Makes Sense
Interest rates have dropped
Your credit score has improved
You want to shorten your loan term
Eliminating private mortgage insurance
Why Use a Refinance Calculator?
A refinance calculator is the essential first step before contacting lenders. Refinancing replaces your existing mortgage with a new loan, ideally at a lower interest rate, a shorter term, or both. This calculator lets you compare your current mortgage against proposed new terms so you can see the exact dollar impact before committing. Enter your remaining balance, current rate, new rate offer, and estimated closing costs to get an instant breakdown of monthly savings, total interest saved, and the critical break-even timeline. Use it alongside the Mortgage Calculator to model different loan scenarios or the Amortization Calculator to visualize how each payment splits between principal and interest.
The break-even analysis is particularly important because closing costs typically run 2-5% of the loan amount. Without calculating the break-even point, homeowners risk paying more in fees than they ultimately save. This calculator handles that math instantly, telling you the exact month when cumulative savings overtake upfront costs. If you are also weighing whether to pay down other obligations first, the Debt Payoff Calculator can help you prioritize high-interest debts against a potential refinance. For homeowners considering whether to refinance or invest the difference, the Investment Calculator provides a useful comparison of returns over the same time horizon.
Whether you are evaluating a rate-and-term refinance to lower payments, a cash-out refinance to access equity, or a term reduction to pay off your home sooner, this tool gives you the clarity to decide confidently. All calculations run entirely in your browser with no data sent to any server, so your financial information stays private. Pair it with the Home Affordability Calculator if you are also exploring a new purchase, or use the Savings Calculator to project how redirected mortgage savings could grow over time.
How It Compares
Rate-and-term refinancing replaces your current mortgage with a new one at a different rate or term without changing the loan balance. It is the most common type of refinance and is ideal when interest rates have dropped or your credit profile has improved. Cash-out refinancing, on the other hand, lets you borrow more than your remaining balance and receive the difference as cash. Cash-out refinances typically carry slightly higher rates and add to your total debt, so they are best reserved for high-value uses like home improvements that increase property value or consolidating high-interest debt.
Streamline refinance programs, such as FHA Streamline or VA IRRRL, offer a simplified process with reduced documentation and often no appraisal requirement. These programs are limited to borrowers who already have the corresponding government-backed loan type. Regardless of which refinance path you consider, the key question remains the same: does the long-term savings outweigh the upfront cost? This calculator answers that question in seconds by computing your break-even timeline and net savings across the full loan term.