🔄Mortgage Refinance Calculator
Compare your current mortgage to a new one and find your monthly savings and how long it takes to break even on closing costs. The break-even point is the single most important number when deciding whether to refinance.
Last updated: · Reviewed by The CalcWise Team
How to use this calculator
- Enter your current balance, interest rate, and the number of years left on your existing mortgage.
- Enter the new interest rate and term you are being offered, plus the estimated closing costs.
- Click Calculate to see your new payment, monthly savings, and break-even point in months.
How it works
Refinancing replaces your existing mortgage with a new one — ideally at a lower rate. The catch is closing costs, which typically run 2–5% of the loan amount. Refinancing only pays off if you keep the loan long enough for the monthly savings to recover those costs.
That recovery period is the break-even point. If you plan to stay in the home well beyond it, refinancing usually makes sense. If you might move or sell sooner, the closing costs can outweigh the savings.
Watch the term carefully. Refinancing a 27-year-remaining loan into a fresh 30-year loan lowers the payment but can increase total interest paid. This calculator shows the lifetime cost difference so you can judge the real trade-off, not just the monthly number.