Mortgage Refinance Calculator
Calculate monthly savings, break-even point, and total savings from refinancing your mortgage.
Current Loan
New Loan
Results
When Does Refinancing Make Sense?
Refinancing makes financial sense when the total interest savings over your planned loan period exceed the closing costs. The break-even point — the month at which cumulative savings surpass closing costs — is the key metric. If you plan to stay in the home longer than your break-even period, refinancing saves money. If you plan to sell or refinance again before break-even, it costs money.
As a rule of thumb, a rate reduction of 0.75% or more is typically worth investigating, though the math varies based on your remaining balance, how long you plan to stay, and what closing costs you can negotiate.
The Term Extension Tradeoff
Refinancing into a new 30-year loan after you have already paid down several years on your current loan resets your amortization clock. Even at a lower rate, a longer term means more total interest paid over the full life of the loan. This calculator accounts for that by comparing lifetime interest totals, not just monthly payments. If your goal is to minimize total interest, consider refinancing into a shorter term — 15 or 20 years — even if the monthly payment is higher.