Refinance Calculator
See your new payment, monthly savings, break-even point, and lifetime cost before you refinance.
Your details
New loan
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Monthly savings
$329.30
$2,281.74 now → $1,952.44 after refinancing
Includes your inputs, the full breakdown, and every row of the table.
Break-even point
1 yr 6 mo
Time to recover closing costs
New loan amount
$326,000
Lifetime cost change
-$9,024
You pay less overall
Total interest (new loan)
$376,878
$391,902 on the current loan
- Current payment (P&I)
- $2,281.74
- New payment (P&I)
- $1,952.44
- Closing costs
- $6,000
- Monthly difference
- $329.30
What this means
- If you stay in the home longer than 1 yr 6 mo, the refinance pays for itself.
- Note that resetting to a longer term lowers the payment but can raise lifetime interest even at a lower rate.
How the refinance calculation works
Refinancing swaps your existing mortgage for a new one. The headline number everyone quotes is the payment drop, but the honest test is the break-even point: closing costs divided by monthly savings. If you plan to sell or refinance again before that date, the deal loses money no matter how good the rate looks.
The second trap is term reset. Refinancing a loan with 22 years left into a fresh 30-year loan lowers the payment partly because you stretched the debt out by eight extra years. The lifetime cost line above shows whether the lower rate actually beats the longer term.
Frequently asked questions
What rate drop makes refinancing worth it?
The old rule of thumb was 1%, but the real answer depends on loan size. On a $600,000 balance a 0.5% drop can break even in under two years; on a $120,000 balance the same drop may take six. Use the break-even figure above rather than a rule of thumb.
Should I roll closing costs into the loan?
Rolling them in preserves cash but means paying interest on those costs for the life of the loan. If you have the cash and plan to keep the mortgage a long time, paying up front is cheaper.
Related calculators
Mortgage Calculator
Estimate your full monthly payment including taxes, insurance, PMI, and HOA — plus total interest and an amortization schedule.
Real EstateClosing Cost Calculator
Estimate lender fees, title charges, prepaids, and transfer taxes to find the real cash you need at closing.
Real EstateHome Affordability Calculator
Work backwards from your income, debts, and down payment to the maximum home price a lender will approve.
Real Estate15 vs 30 Year Mortgage Calculator
Compare the payment, the total interest, and what happens if you take the 30 and invest the difference.
Real EstateSpotted a problem, or want this calculator to do more?Corrections are fixed first, and the most-requested features get built next.Tell us →
Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.