Refinance Calculator
Does refinancing actually save you money? Find the break-even.
Current monthly payment:
New monthly payment:
Monthly savings:
Break-even point:
How to use this calculator
Enter your balance, current rate, new rate, new term and closing costs, then press Calculate. Old and new payments plus the break-even month are shown.
Worked example
Refinancing a $300,000 balance from 7% to 5.5% over a new 30-year term cuts the payment by around $300 a month. If closing costs are $7,500, the break-even is 7,500 / 300 = 25 months. Stay past that point and the refi pays off; move sooner and it loses money.
What the result means
Two numbers matter: the monthly savings and the break-even month. The break-even is the only honest test - it divides closing costs by monthly savings to tell you when you recover the fees.
The term trap to avoid
- A 30-year refi on a loan already 10 years in resets the clock to 30 more years.
- Keep the remaining term or shorten it, or the "lower payment" hides extra years of interest.
- Compare total interest, not just the monthly payment, before deciding.
Frequently asked questions
When is refinancing worth it?
When rates are meaningfully lower (a half point or more) and you plan to stay past the break-even point. Cash-out refis are a separate decision - you are borrowing more, not saving.
Get real quotes, not advertised rates, before trusting the output: actual closing costs and your final rate depend on your credit, home value and lender fees, and the advertised rate rarely matches the approved one. Run the tool once with a conservative rate and costs, then again when the lender's numbers arrive.