Financial Calculators
Mortgage Refinance Calculator
Compare an existing fixed-rate mortgage with a proposed refinance, including payment change, interest, fees, cash-out and estimated break-even timing.
Compare refinance scenarios
Mortgage Refinance Calculator
Compare a current mortgage with a proposed fixed-rate refinance, including fees, points, cash out, and break-even timing.
Refinance estimate
- Current Monthly Payment
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- New Monthly Payment
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- Monthly Payment Change
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- Current Remaining Interest
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- New Loan Interest
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- Closing Costs
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- Points Cost
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- Total Refinance Cost
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- Break-Even Period
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- Break-Even Date
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- Estimated Interest Savings
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- Estimated Lifetime Savings / Cost Difference
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- Cash Out (not savings)
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| Loan | Balance | Rate | Term | Monthly Payment | Projected Interest |
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Results are estimates. Actual refinance rates, lender fees, taxes, escrow changes, and qualification requirements may differ.
Your calculation is processed in your browser and is not stored by this tool.
Results are mathematical estimates, not a refinance offer or recommendation. Actual rates, closing costs, taxes and lender terms may differ.
How to use the mortgage refinance calculator
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Enter the current balance, interest rate and remaining term.
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Add the current principal-and-interest payment or leave it blank for an estimate.
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Enter the proposed new rate and term.
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Include closing costs, points, other fees, cash-out and whether costs are rolled into the loan.
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Compare payment savings, interest, lifetime difference and break-even time.
How the refinance comparison works
The tool amortizes the remaining current balance and calculates a new fixed-rate payment for the proposed term. Refinance cost includes closing costs, points and other fees. When costs are financed, they increase the new principal. Cash-out also increases the new balance.
Refinance break-even example
For a $300,000 balance with 25 years remaining at 6.5%, refinancing to 5.5% for the same 25 years reduces the modeled monthly payment from about $2,025.62 to $1,842.26. With $6,000 of total refinance costs, estimated monthly savings are $183.36 and break-even is about 33 months. The modeled lifetime difference is about $49,008 in this simplified example.
What break-even means
Break-even months equal total refinance costs divided by monthly payment savings. It estimates how long the lower payment takes to recover upfront costs. If you expect to sell, move or refinance again before that point, the transaction may not recover its costs. A lower payment alone does not guarantee lower lifetime expense.
Cash-out, points and a longer term
A cash-out refinance provides additional borrowed funds but raises the balance. Discount points add an upfront percentage-based cost. Extending the term can lower the payment while increasing total interest or keeping the borrower in debt longer. Compare matching terms as well as the lender option you are considering.
Important limitations
- Principal and interest: property taxes, insurance and HOA charges are not included in the loan-payment comparison.
- Fixed-rate model: adjustable rates and future rate changes are not modeled.
- Taxes: tax deductions or tax consequences are excluded.
- Quotes: lender fees, escrow adjustments and payoff amounts can differ.
- No recommendation: review loan documents and personal plans before refinancing.
Related tools
Mortgage Refinance Calculator FAQ
How is refinance break-even calculated?
Total refinance costs are divided by positive monthly payment savings and rounded up to whole months.
Can I include cash-out?
Yes. Cash-out increases the proposed new principal.
What happens when closing costs are rolled into the loan?
The costs increase the new loan balance instead of being treated as an upfront cash outflow.
Does the payment include tax and insurance?
No. The comparison focuses on mortgage principal and interest.
Can a longer term lower my payment but cost more?
Yes. Spreading repayment over more months can reduce the payment while increasing total interest.
Is refinancing always worthwhile when the rate is lower?
No. Fees, term changes, cash-out and how long you keep the loan affect the result.
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