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This refinance calculator shows whether refinancing your mortgage is worth it. Enter your current balance and rate, the new rate you can get, and your closing costs — it calculates your new payment, monthly savings, and the break-even point where the savings cover the costs.
How to use it
Enter your current loan balance and rate, the new rate you have been quoted, the new term, and estimated closing costs. If your monthly savings pay back the costs well before you plan to sell or move, refinancing usually makes sense.
How break-even works
Break-even months = closing costs ÷ monthly savings. If closing costs are $5,000 and you save $250/month, you break even in 20 months — after that, the savings are yours. Refinancing into a longer term can lower the payment but may increase total interest, so compare carefully.
Related
Mortgage Refinance Calculator FAQ
Is it worth it to refinance my mortgage?
Generally yes if the new rate is meaningfully lower and you will stay in the home past the break-even point. Dropping from 7.5% to 6% on a $260,000 loan saves roughly $250/month, breaking even on $5,000 of costs in about 20 months.
How much does it cost to refinance?
Closing costs typically run 2%–5% of the loan amount, covering the appraisal, origination, title, and fees. Enter your quoted costs above to see the true break-even.
What is the break-even point on a refinance?
It is how long it takes for your monthly savings to repay the closing costs. If you plan to keep the home longer than the break-even period, refinancing pays off.
Does refinancing reset my loan term?
It can. Refinancing a 25-years-left loan into a new 30-year term lowers the payment but stretches the payoff and can raise total interest. Choosing a 15- or 20-year term keeps you on track.
How much does a 1% lower rate save?
On a $260,000 balance, cutting the rate by 1% saves roughly $170/month, or about $2,000 a year — often enough to justify refinancing if you stay past break-even.
Written by Nicolas William, Lead Financial Editor at Finances News. Estimates for planning only. Last updated 2026.