Refinance Calculator
Compare your current mortgage to a refinance offer to find the monthly savings, total lifetime interest difference and how many months until you break even on closing costs.
How to use the Refinance Calculator
- Enter your inputs into the Refinance Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The refinance break-even math
Break-even months = Closing costs / Monthly savings
Compare current monthly payment to refinanced monthly payment to find monthly savings. Divide closing costs by the savings to get the months to recoup the cost. Beyond that point, the refinance is net positive.
Worked example
A $300,000 mortgage at 7.25% with 28 years left, refinanced to 6.25% (same term): monthly payment drops from $2,047 to $1,847 — savings of $200/month. Closing costs of $7,000 yield break-even at month 35 (~3 years).
Frequently asked questions
Is the 1% rate-drop rule still valid?
It's a useful screening heuristic. The actual decision should be based on break-even time against your expected time in the home, not just the rate drop.
Should I refinance into a 30-year or shorter term?
Most refinances default to 30 years, which extends total payback period. Refinancing into a 15-year at a lower rate can dramatically cut lifetime interest if you can afford the higher payment.
What are typical closing costs?
Usually 2–5% of the loan balance: title insurance, appraisal, origination, recording, prepaid taxes and insurance. Some lenders offer "no-cost" refinancing that bakes the costs into the rate or principal.