Mortgage Refinance Calculator — Compare Old vs New Payment

Current Loan Balance ($)Enter a valid balance.

Current Interest Rate (%)Enter a valid rate.

Remaining Term (years)Enter a valid term.

New Interest Rate (%)Enter a valid rate.

New Loan Term (years)Enter a valid term.

Refinance Closing Costs ($)

Monthly Payment Change

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Current Payment

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New Payment

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Break-Even Point

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How to Use This Tool

Enter your current loan balance, rate, and remaining term.
Enter the new rate and term you're considering.
Enter estimated closing costs for the refinance, then compare.

Should You Refinance?

Refinancing replaces your existing mortgage with a new one, ideally at a lower interest rate or better terms. This calculator compares your current monthly payment to what you'd pay under the new loan, and calculates your break-even point — how many months it takes for your monthly savings to cover the refinance's closing costs.

The Break-Even Point

Break-Even (months) = Closing Costs ÷ Monthly Savings

If you plan to stay in your home longer than the break-even period, refinancing is generally worth the upfront cost. If you might sell or move before then, the closing costs may outweigh the savings.

Other Reasons to Refinance

Switching from adjustable to fixed rate for payment stability
Shortening the loan term to pay off the mortgage faster (even if the rate is similar)
Cash-out refinancing to access home equity for other expenses

Frequently Asked Questions

What is a good break-even period for refinancing?

There's no universal answer, but many financial advisors suggest refinancing makes sense if you plan to stay in the home longer than the break-even period, commonly cited as under 2-3 years for it to clearly be worthwhile.

Does resetting my loan term to 30 years always save money?

It typically lowers your monthly payment, but resetting the clock on a new 30-year term (even at a lower rate) can sometimes mean paying more total interest over time compared to continuing your original loan, depending on how far along you were.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.