Refinance Calculator

This calculator compares the monthly payment on your current loan with the payment on a refinanced loan using a new rate and term.

It also adds refinance closing costs and any cash-out amount to the new loan amount, then estimates the break-even period based on the monthly savings.

A refinance can lower monthly payments, reduce interest, or provide cash out, but longer loan terms and higher costs can reduce the overall benefit.

The calculator uses the standard amortized loan payment formula for both the current loan and the refinanced loan.

A refinance calculator helps you compare your current mortgage with a new refinance loan. It shows whether changing your interest rate, loan term, or loan amount could reduce your monthly payment or save money over time.

A good mortgage refinance calculator should estimate monthly savings, break-even months, closing costs, total interest, and long-term refinance benefit. That is exactly what this tool is designed to do.

Refinancing is usually worth considering when the new loan lowers your interest rate, reduces your monthly payment, or creates total lifetime savings that justify the closing costs.

The break-even point is one of the most important checks. If you expect to keep the home longer than the number of months needed to recover the refinance closing costs, the refinance may make more financial sense.

However, a lower monthly payment does not always mean a better deal. If the new loan term is much longer, you could still end up paying more total interest over time.

The refinance break-even point tells you how long it takes for your monthly savings to recover the upfront refinance costs. This is one of the most searched refinance topics because it quickly shows whether a refinance might be practical.

For example, if refinancing costs $6,000.00 and saves $343.62 per month, the break-even point is the number of months required for those monthly savings to offset the closing costs.

If there is no monthly savings, or the new payment is higher, then there may be no useful break-even point at all.

Many homeowners refinance to get a lower monthly mortgage payment, but the lower payment can sometimes come from stretching the loan into a longer term. That may reduce monthly pressure while still increasing total interest paid over the life of the loan.

This is why refinance decisions should compare both monthly savings and lifetime savings. The best refinance calculator pages do not stop at monthly payment alone. They also show long-term interest impact, which can materially change the decision.

A rate-and-term refinance focuses on improving your mortgage terms, usually by lowering the interest rate, changing the term length, or both. The goal is often lower payments, lower interest, or improved loan structure.

A cash-out refinance increases the new mortgage amount and lets you take extra money from your home equity. This can be useful for major expenses, but it also raises the loan balance and may reduce the financial benefit of the refinance.

If you are comparing a cash-out refinance, it is especially important to review the new loan amount, monthly payment, total interest, and break-even timeline together.

In the current example on this page, the loan balance is $300,000.00, the current rate is 7.25%, and the refinance rate is 5.95%.

Based on those numbers, the calculator estimates a current monthly payment of $2,168.42 and a new monthly payment of $1,824.80. That creates an estimated monthly savings of $343.62.

The estimated break-even point is 18 months, and the lifetime savings estimate is -$12,401.65.