Refinance calculator
Refinancing only makes sense if the math actually works. This calculator compares your current payment to a new rate and term and shows exactly how long it takes to recoup the closing costs.
$2,253/mo now, $1,970/mo after refinancing
Refinancing costs $6,000 upfront. You would save $283 every month on your payment, so it takes about 22 months of those savings to pay back that $6,000 cost. Every month you stay in the loan after that point, you keep the savings instead.
| Metric | Current loan | New loan |
|---|---|---|
| Loan amount | $320,000 | $320,000 |
| Interest rate | 7.25% | 6.25% |
| Years to pay it off | 27 | 30 |
| Monthly payment | $2,253 | $1,970 |
| Interest owed from today forward | $410,108 | $389,306 |
| Closing costs to get there | $0 | $6,000 |
A longer new term can lower your monthly payment while still costing more in total interest, so the interest owed from today forward and the monthly payment in this table are answering different questions on purpose.
A free account keeps your numbers ready across every calculator, no re entering them each time.
How this calculator works
- Step 1Enter your current loan
Remaining balance, current rate, and years left.
- Step 2Enter the new loan terms
The new rate, new term, and estimated closing costs.
- Step 3See your break even point
The new payment, the monthly savings, and how many months until closing costs pay for themselves.
Frequently asked questions
What is a refinance break even point?
It is how many months of monthly savings it takes to recoup what you paid in closing costs to refinance. If your break even point is 24 months and you plan to stay in the home for at least that long, refinancing is a clear financial win, not just a lower payment on paper.
What closing costs should I expect on a refinance?
Typically 2% to 5% of the loan amount, covering the appraisal, title insurance, lender fees, and recording costs, similar to a purchase. Some lenders offer a no closing cost refinance, which usually means the costs are rolled into a slightly higher rate instead of paid upfront.
Does refinancing to a lower rate always save money?
Not automatically. Refinancing into a new 30 year term can lower your monthly payment even at a similar rate, simply by restarting the clock, but that can mean paying more total interest over time. The refinance savings calculator answers that lifetime question directly.
How much does my credit score matter for a refinance rate?
A great deal, refinance rates are priced off the same credit tiers as a purchase loan. Checking your credit and addressing anything easily fixable before applying, like a high credit card balance, can meaningfully improve the rate you are offered.
Is there a minimum time I need to wait before refinancing?
Most conventional refinances have no required waiting period, though some loan types and cash out refinances have a seasoning requirement, often six months. Check with your lender for your specific loan type, but for a standard rate and term refinance, timing is usually about the math, not a rule.
More refinancing calculators
The total dollar question: how much refinancing saves or costs over the full loan life.
Your new payment after rolling extra cash into a new mortgage, and whether there is a real break even.
Same mortgage, two ways to refinance it. See what taking cash out really costs you each month.
Every number on this page is a planning estimate, for informational and educational purposes only, not professional advice.
Before you act on any major decisions, consult a qualified accountant, tax advisor, or financial advisor who knows your full picture.