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Refinance Calculator
Find your new payment, monthly savings and refinance break-even point.
Monthly savings
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New vs old payment.
| New payment | — |
|---|---|
| Break-even | — |
| Old payment | — |
| Closing costs | — |
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Enter your figures above to see the step-by-step working.
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How the Refinance Calculator Works
Refinancing replaces your mortgage with a new one, usually to get a lower rate or a different term. This calculator takes your loan balance, the new rate and term, and your current payment, and works out the new monthly payment, how much you’d save each month, and the break-even point — how long it takes for the monthly savings to cover the closing costs.
If you’ll stay in the home past the break-even point, refinancing usually pays off. The new payment uses the standard amortization formula on the balance at the new rate and term.
break-even (months) = closing costs ÷ monthly savings
Frequently Asked Questions
When is refinancing worth it?
When you’ll keep the loan past the break-even point — the number of months of savings needed to recover the closing costs.
How do you calculate the break-even on a refinance?
Divide the closing costs by the monthly payment savings. $4,000 in costs saving $160 a month breaks even in about 25 months.
Does a longer term lower my payment?
Yes, but stretching the term can raise the total interest paid even at a lower rate. Compare total cost, not just the monthly payment.
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