Mortgage Refinance Calculator

Should you refinance? Calculate new payment, monthly savings, break-even point, and total interest savings over the life of the loan.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home

$
%
%
New Loan Term
$

New Monthly Payment

$1,419.47

Monthly Savings

$268.55

Break-Even Month

Month 19

1.6 years

Total Interest Savings

-$4,604.10

Total Cost Comparison

Keep Current Loan
Current Payment (principal & interest)$1,688.02
Remaining Payments$506,406.00
Total Interest$256,406.00
Refinance
Total Payments$511,010.10
Closing Costs$5,000.00
Total Cost (incl. closing)$516,010.10
Total Interest$261,010.10
Additional Cost from Refinance$9,604.10

Use the Mortgage Refinance Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Weighing a mortgage refinance means answering one question first: does the new loan actually leave you better off? Feed in your current mortgage and a prospective replacement, and you get the new monthly payment, the amount you'd save each month, and the point at which those savings finally cover your closing costs.

You enter your balance, current rate and the months left; the standard amortization formula turns those into your current principal-and-interest payment, and into the new loan's payment on the same balance at the new rate and term. Closing costs divided by the monthly saving, rounded up, give the break-even month. For the totals, the tool compares your current payment times the months left with the new loan's payments over its full term plus closing costs, so a new 30-year term can cost more overall even when the monthly payment falls.

Chasing the lowest interest rate alone can be a trap, because closing costs determine whether a lower rate ever pays for itself. Shortening the loan term is another place borrowers stumble: even at a reduced rate, a shorter term pushes the monthly payment higher, so confirm the new schedule actually fits what you're trying to accomplish.

Example: Refinancing a $250,000 Balance From 6.5% to 5.5%

  1. 1 Step 1: Input the current loan: a $250,000 balance at 6.5% with 300 months (25 years) left which the calculator turns into a principal-and-interest payment of $1,688.02, what $250,000 at 6.5% over 300 months costs. Then the new loan: 5.5%, a 30-year term and $5,000 of closing costs.
  2. 2 Step 2: The new payment on $250,000 at 5.5% over 360 months is $1,419.47, so the monthly saving is $1,688.02 - $1,419.47 = $268.55. Break-even: $5,000 / $268.55 = 18.6, rounded up to month 19 (1.6 years).
  3. 3 Step 3: Totals. Keeping the current loan costs $1,688.02 x 300 = $506,406, of which $256,406 is interest. The new loan costs $1,419.47 x 360 = $511,010.10 ($261,010.10 interest) plus $5,000 of closing costs, $516,010.10 in all. So the calculator shows total interest savings of -$4,604.10 and an additional cost of $9,604.10 from refinancing: the lower payment comes from stretching 25 remaining years back out to 30.
  4. 4 Step 4: Switch the new term to 15 years and the payment becomes $2,042.71, $354.69 more than now, so break-even shows Never. But interest falls to $117,687.55, and the refinance costs $133,718.45 less than keeping the current loan, closing costs included.

Source: CFPB — Owning a Home · Last updated: September 2026

Frequently Asked Questions

When does it make sense to refinance a mortgage?
A common rule of thumb is to refinance when you can lower your rate by at least 0.5-1%. Also consider how long you plan to stay in the home versus the break-even point (closing costs divided by monthly savings).
How much does it cost to refinance a mortgage?
Refinance closing costs typically run 2-5% of the loan amount, or $4,000-$10,000 on a $200,000 loan. Costs include appraisal, title search, origination fee, and recording fees.
Does refinancing restart my 30-year mortgage?
It can. Refinancing into a new 30-year term lowers your payment but extends payoff. You can refinance into a shorter term (15 or 20 years) to avoid this, or make extra payments on a 30-year to pay it off faster.

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