Mortgage Refinance Calculator
Compare your current and new monthly payments, see how quickly you break even on closing costs, and find out if refinancing actually saves you money.
Refinancing only saves money if you stay in the home long enough to recoup closing costs — always calculate the break-even first.
~$150
average monthly savings per refi in the US
30 mo
typical break-even period
$3–5K
average closing costs on a refinance
Before you sign the refinance papers
The break-even calculation
Break-even = closing costs ÷ monthly savings. If it takes 36 months to break even and you plan to move in 2 years, refinancing costs you money overall.
Cash-out vs rate-and-term
Rate-and-term refis lower your rate or change your term. Cash-out refis let you borrow against equity — but increase your balance and reset amortisation.
When NOT to refinance
If you're 20+ years into a 30-year mortgage, most of your remaining payments are principal. A new 30-year refi at a lower rate can actually cost more total interest.
How the break-even calculation works
Break-even (months) = closing costs ÷ (old payment − new payment). Net savings = monthly savings × months remaining − closing costs.
If you sell or move before the break-even month, you lose money on the refinance. The longer you stay after break-even, the better the deal becomes.