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Mortgage Refinance Calculator

This mortgage refinance calculator compares your current principal-and-interest payment with a new loan and estimates break-even on closing costs.

Remaining principal on the loan you would refinance.

Rate on the existing loan. 0% is allowed.

Years left on the current loan.

Added to remaining years. Example: 24 years + 6 months.

Quoted refinance rate. This page does not fetch live rates.

Full term of the new loan, not years remaining.

Cash costs to close. Used for break-even months.

Added to the current balance unless you override the new loan amount.

Leave blank to use current balance plus cash-out.

Leave blank to compare over the longer of the two full terms.

Refinance comparison

Current monthly P&I
$1,890.58
New monthly P&I
$1,634.00
Monthly savings
$256.58
New loan amount
$280,000.00
Interest, keep current (full term)
$287,173.99
Interest, refinance (full term)
$308,244.18
Interest difference over 30 years
-$21,070.19
Break-even
23.4 months

The new monthly payment is lower, but estimated interest over the full new term is higher than keeping the current loan. A longer term can raise lifetime interest even when the rate drops.

Principal and interest only. Closing costs are treated as cash at closing for break-even (closing costs ÷ monthly savings). Not a rate quote, and not taxes, insurance, or escrow.

Advertiser disclosure: A finance partner link will show here when it is live. We may earn a commission if you use it. This is not a loan offer, and the calculator result does not change.

How to use

  1. Enter the current balance, rate, term, and payment inputs the form asks for.
  2. Enter the new rate and term. Add cash-out or a loan-amount override if the new note is not the current balance.
  3. Enter closing costs and read the new payment, interest difference, and months to break even.

Formula

Both payments use the monthly amortizing formula. Break-even months = closing costs ÷ monthly principal-and-interest savings. There is no payment-based break-even when the new payment is not lower. Cash-out is added to the balance unless you override the new loan amount.

Example. If the new payment is $150 lower and closing costs are $4,500, break-even is 30 months ($4,500 ÷ $150).

Frequently asked questions

When does a refinance break even?

Break-even is closing costs divided by monthly P&I savings. If the new payment is $150 lower and closing costs are $4,500, break-even is 30 months. If you sell or refinance again before then, you may not recoup the costs. There is no payment-based break-even if the new payment is not lower.

Should I include cash-out?

Include cash-out when you will borrow extra cash at closing. This tool adds that amount to the current balance unless you enter a new loan amount override. Cash-out raises the new payment and interest, so compare it only if you actually need the cash.

Is this a rate quote?

No. This page does not pull live lender rates, check credit, or make an offer. Enter a rate you were quoted or are considering. Fees, points, and lock periods come from the lender.

Does this include taxes and insurance?

No. Both the current and new payments are principal and interest only. Escrow for taxes and insurance can change after a refinance and is not modeled here.

What if the new payment is higher?

The calculator still shows both payments, interest over the comparison horizon, and notes that there is no payment-based break-even. A higher payment can happen if you cash out, shorten the term, or the new rate is not low enough. That is not automatically a bad refinance if your goal is to pay off sooner.

How is the new loan amount calculated?

By default it is the current balance plus optional cash-out. Use the override field if the new note will be a specific amount (for example after rolling in some costs or bringing cash to closing). Closing costs are treated as cash at closing for the break-even math unless you add them into that override.

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