Refinance Calculator
Use this free mortgage refinance calculator to answer the only question that matters: is refinancing actually worth it? Compare your current loan to a new rate and term and see your monthly savings straight away.
The tool shows your break-even point — how long it takes your savings to cover closing costs — plus the difference in total interest over the life of the loan. Refinance only when the math says yes. No account, no sign-up, no spreadsheet.
Estimates are for illustration and education only — not a loan offer. Actual savings depend on your lender's rate, fees, and how long you keep the loan.
How refinancing pays off
Refinancing swaps your loan for a new one — usually at a lower rate. You pay closing costs upfront, then save a bit every month. The question is whether you'll keep the loan long enough for those monthly savings to overtake the upfront cost.
Common refinance scenarios
Three ways people refinance. Load any one into the calculator and adjust from there.
How to use the refinance calculator
Four short steps. Change any field and the savings, break-even and chart update instantly.
Enter your balance
The amount still owed on your current mortgage — not the original loan amount or the home's value.
Current rate and years left
Your existing interest rate and how many years remain, so the tool knows your payment today.
New rate and term
The rate you've been quoted and the new term. A fresh 30 years lowers the payment but can raise total interest.
Add closing costs
Lender and third-party fees to refinance. The break-even shows how long until your savings cover them.
Should you refinance?
Refinancing replaces your existing mortgage with a new one, ideally at a lower rate. It can cut your monthly payment, shorten your term, or free up cash — but it isn't free. You pay closing costs upfront, so the decision comes down to whether you'll stay in the loan long enough to come out ahead.
The break-even is everything
The break-even point is how many months of savings it takes to recover your closing costs. If you break even in 18 months and plan to keep the home for years, refinancing is an easy win. If you might sell or refinance again before then, you'd lose money. Always compare the break-even to how long you'll realistically hold the loan.
Watch the term reset trap
Dropping to a lower rate but restarting a fresh 30-year term can increase your total interest even though the monthly payment falls — because you're stretching the debt back out. This tool's lifetime-savings figure catches that: a lower monthly payment with a negative lifetime saving is a cash-flow move, not a money-saving one.
Good reasons to refinance
Rates have dropped meaningfully since you borrowed; you want to shorten your term and pay less interest overall; you're switching from an adjustable to a fixed rate; or you want to drop mortgage insurance now that you have enough equity. A tiny rate change rarely justifies the fees.
Who it's for
Any homeowner weighing an offer to refinance. You only need your current balance, rate and years remaining, plus the new rate, term and estimated closing costs.
Comparing the underlying loans in more detail? Try the mortgage calculator or the amortization calculator, or browse all our free tools.