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Refinance Calculator

Compare your current mortgage against a new loan to see monthly savings, total interest saved, and exactly how many months until you break even on closing costs. Free, no sign-up required.

Current Mortgage

New Mortgage

Refinance Analysis

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How the Refinance Calculator Works

This calculator compares your current mortgage payment against the new payment, then divides your closing costs by the monthly savings to find the break-even point �?the number of months until refinancing pays for itself.

Break-Even Formula

Break-Even (months) = Closing Costs / Monthly Savings

If you plan to stay in the home longer than the break-even period, refinancing is financially beneficial. The total interest saved is calculated by comparing the remaining interest on your current loan vs. the total interest on the new loan.

Refinance Scenarios

BalanceRate ChangeMonthly SavingsClosing CostsBreak-Even
$300,0007.5% �?6.5%~$200$6,00030 months
$300,0007.5% �?6.0%~$300$6,00020 months
$200,0007.0% �?6.0%~$130$4,00031 months
$500,0007.5% �?6.5%~$330$10,00030 months

When Does Refinancing Make Sense?

  • Rate drop of 0.5%+: Generally the minimum threshold to justify closing costs.
  • You plan to stay: Must stay past the break-even point to benefit.
  • ARM to fixed: Eliminates rate uncertainty, worth it even at similar rates.
  • Shorten term: Refinancing from 30 to 15 years saves massive interest even at similar rates.
  • Cash-out: Access home equity for renovations or debt consolidation (increases loan balance).

Refinance Calculator �?Frequently Asked Questions

When should I refinance my mortgage?

Refinancing makes sense when you can lower your rate by 0.5%�?%+, plan to stay past the break-even point, want to switch from ARM to fixed, or want to shorten your term. Use the calculator above to find your exact break-even.

What is the break-even point for refinancing?

Break-even = Closing Costs ÷ Monthly Savings. If closing costs are $4,000 and you save $200/month, break-even is 20 months. Stay longer than that and refinancing is worth it.

How much does it cost to refinance?

Typically 2%�?% of the loan amount. On a $300,000 loan: $6,000�?15,000. Costs include origination fees, appraisal, title insurance, and prepaid items. Some lenders offer no-closing-cost refinances by rolling costs into the rate.

Is it worth refinancing to save $100 a month?

At $100/month savings with $3,000 closing costs, break-even is 30 months. If you plan to stay 5+ years, likely worth it. If you might move in 2 years, probably not. Enter your numbers above for a precise answer.

What credit score do I need to refinance?

Most conventional refinances require 620+. For the best rates, aim for 740+. FHA streamline refinances may have more flexible requirements. Higher scores mean lower rates and more savings.

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Educational purposes only. Not financial advice. Actual refinance savings depend on lender terms, credit score, and market conditions. Consult a licensed mortgage professional.