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Mortgage Refinance Calculator

Updated January 2026

A mortgage refinance calculator helps you compare your current mortgage against a new loan to see if refinancing makes financial sense. Enter your current loan details and proposed refinance terms to calculate your monthly savings, break-even point, and total interest savings.

How to Use This Calculator

Enter your current mortgage balance, interest rate, and remaining years. Then enter the new interest rate you're being offered, the new loan term, and estimated closing costs. The calculator compares both loans side by side — showing your new monthly payment, monthly savings, break-even point in months, and total interest comparison over the life of each loan.

How It's Calculated

This calculator runs the standard amortization formula twice — once for your current loan and once for the proposed refinance:

M = P × [ i(1+i)^N ] / [ (1+i)^N − 1 ]

Monthly savings = Current monthly payment − New monthly payment. Break-even point (months) = Total closing costs / Monthly savings. Total interest comparison shows remaining interest on the old loan vs. total interest on the new loan over its full term.

Frequently Asked Questions

Refinancing typically makes sense when you can lower your interest rate by at least 0.5% to 1%, when you plan to stay in your home long enough to recoup closing costs, or when you want to switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan for payment stability. It can also make sense to shorten your loan term (e.g., from 30 to 15 years) or to tap into home equity through a cash-out refinance.
Refinancing typically costs 2% to 6% of the loan amount in closing costs. On a $300,000 loan, that's $6,000 to $18,000. These costs include the appraisal fee, origination fee, title insurance, credit report fee, recording fees, and points you might pay to lower your rate. Some lenders offer "no-closing-cost" refinancing, but those typically come with a higher interest rate, so compare carefully.
Your break-even point is the number of months it takes for your monthly savings to equal your total closing costs. Divide total closing costs by your monthly savings to find it. For example, if refinancing costs $6,000 and saves you $200 per month, your break-even is 30 months. If you plan to move before that point, refinancing may not be worth it. Most experts recommend refinancing only if you'll stay past the break-even point.

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