Mortgage Refinance Calculator
Compare current and new mortgage payments.
What would you like to do next?
Estimate refinance savings
Refinancing can lower a mortgage payment, but closing costs and the remaining term matter. Enter the current balance, current rate, new rate, years remaining and closing costs to estimate the new payment, monthly savings, break-even point and interest savings after costs. It is useful for quick refinance screening before doing a full lender quote.
Break-even view
The break-even estimate divides closing costs by monthly payment savings. If savings are small or negative, a refinance may not pay back the upfront cost.
What the refinance estimate includes
The calculator compares fixed-rate principal-and-interest payments over the same remaining term and treats closing costs as part of the decision.
Method
Each payment uses the standard fixed-payment amortization formula. Break-even months are closing costs divided by estimated monthly savings.
payment = principal x r / (1 - (1 + r)^(-months))
Worked example
For a $300,000 balance with 30 years remaining, 6.5% is about $1,896.20 per month and 5.75% is about $1,750.72. With $6,000 in costs, the simple break-even is about 41.2 months.
Limits
- The result excludes taxes, insurance, mortgage insurance, escrow changes, and lender-specific fees unless you include them in closing costs.
- A lower payment can come from restarting or extending the term, which may increase total interest.
- This is a planning estimate, not a loan offer, APR disclosure, or financial advice.
- Consumer Financial Protection Bureau: mortgage costs: Upfront and monthly costs to compare.
- Consumer Financial Protection Bureau: no-cost refinancing: Why closing costs may reappear in the rate or balance.
Reviewed against the current calculator or processor on September 6, 2026.
Frequently asked questions
Does this replace a lender quote?
No. It is a planning estimate only.
What term does it use?
The calculator keeps the years remaining the same for both the current and new loan.
Are closing costs included?
Yes. Closing costs are included in the savings comparison.