Mortgage Refinance Calculator
Free · no sign-up · reviewed July 2026
Refinancing swaps your current mortgage for a new one, ideally at a lower rate. But closing costs mean it only pays off if you stay long enough. This calculator shows your new payment, your monthly savings, and the break-even month when the savings finally cover the costs.
Enter your current loan and the new rate you're being offered. The key number is the break-even: if you'll own the home past that point, refinancing usually makes sense. If you might move sooner, it may not.
Drag to adjust
Monthly savings
$334.86
Break even on $6,000 costs in 1 yr 6 mo
💡 Refinancing drops your payment by $335 a month. After $6,000 in closing costs, you'd break even in about 1 yr 6 mo. Stay in the home past that point and the refinance pays off.
$1,919
New payment
was $2,253
$335
Monthly savings
lower payment
1 yr 6 mo
Break-even
to recoup costs
- New monthly payment$1,919
- Monthly savings$335
- Current payment
- $2,253
- New payment
- $1,919
- Monthly change
- -$335
- Closing costs
- $6,000
- Break-even point
- 1 yr 6 mo
- Lifetime interest change
- -$39,426
The 2-minute guide
Break-even is the whole decision
Refinancing isn't free. You pay closing costs up front, then earn them back slowly through a lower payment. Divide the closing costs by your monthly savings and you get the break-even point. Plan to stay in the home comfortably past it, or the refinance costs you money instead of saving it.
Watch the reset trap
Refinancing a loan you're 5 years into back to a fresh 30-year term lowers your payment partly because you're stretching it out again. That can mean more total interest even at a lower rate. If you can, refinance into a term that keeps or shortens your original payoff date.
The rule of thumb on rates
There's no magic number, but many people find refinancing worthwhile when the new rate is at least 0.5% to 1% below their current one, and they'll stay past break-even. Always compare the total cost, not just the rate, since lender fees vary a lot.
Frequently asked questions
Should I refinance my mortgage?
Refinancing makes sense when the new rate is meaningfully lower than your current one and you'll stay in the home past the break-even point (closing costs divided by monthly savings). If you might move before then, or the new loan stretches your term way back out, it may not be worth it.
What is the break-even point on a refinance?
It's how long it takes for your monthly savings to add up to what you paid in closing costs. If refinancing saves $200 a month and costs $6,000, you break even in about 30 months. After that, the savings are yours to keep.
Does refinancing save money if it lowers my payment?
Not always. A lower payment can come from a lower rate, a longer term, or both. Stretching the loan back out to 30 years lowers the payment but can raise the total interest you pay. Look at both the monthly savings and the lifetime interest change.
How much does it cost to refinance?
Closing costs typically run about 2% to 5% of the loan amount, covering appraisal, title, origination and other fees. Some lenders offer 'no-closing-cost' refinances, but they usually bake the cost into a higher rate, so compare carefully.
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