Mortgage & Home
Refinance Calculator
Enter your current loan and the refinance offer to see whether the new payment actually saves money — and how long it takes to recover the closing costs.
How the refinance comparison works
We calculate your current payment from the remaining balance, current rate, and remaining term. Then we calculate the new payment from the same balance, the new rate, and the new term. The difference is your monthly savings.
Break-even is closing costs divided by monthly savings. If the new payment is higher, there is no break-even. Interest saved compares the total interest left on the current loan with the total interest on the new loan.
A lower payment does not always mean a better deal. If the new term is longer, total interest can increase even when the monthly payment falls.
Frequently asked questions
How is the break-even point calculated?
Break-even is the closing costs divided by the monthly payment savings. It tells you how many months you need to stay in the loan for the refinance to pay for itself.
Why can a refinance lower my payment but cost more overall?
A longer term spreads the loan over more months, which lowers the monthly payment but can increase the total interest. This calculator shows both the monthly savings and the interest difference.
Does refinancing reset my loan term?
Yes. The new term starts fresh. If you refinance a 30-year loan with 25 years left into a new 30-year loan, you extend the payoff date by five years.
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates and may not reflect your exact situation.