Refinance Calculator
Calculate your potential savings from refinancing your mortgage and determine your break-even point.
Calculate your potential savings from refinancing your mortgage and determine your break-even point.
Typically 2–5% of loan amount
Refinancing replaces your existing mortgage with a new loan, ideally at a lower interest rate. The break-even point is when cumulative monthly savings equal the upfront closing costs. After that point, every month generates net savings.
Monthly Savings = Old Payment − New Payment | Break-Even = Closing Costs ÷ Monthly SavingsRefinancing $280,000 from 7.5% to 6.5% saves roughly $170/month. At $5,000 in closing costs, break-even is about 30 months. If you plan to stay 3+ years, refinancing is usually worth it.
If you need liquidity for home improvements, a cash-out refi adds the withdrawn amount to a new loan. The math is the same but total debt increases — weigh the value of the cash against higher lifetime interest.
New loan amount includes closing costs rolled into the balance. Savings are computed on a simple monthly basis. Long-term comparison uses total payment amounts over remaining term.