Refinance Calculator
Calculate your potential savings from refinancing your mortgage and determine your break-even point.
Before you calculate
Compare remaining lifetime costs as well as the payment. Financing closing costs increases principal, and a longer term can raise total interest.
Mortgage Refinance Break-Even
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 SavingsExample Scenarios
Rate Drop of 1%
Refinancing $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.
Cash-Out Refinance
If you need liquidity for home improvements, a cash-out refi adds the withdrawn amount to a new loan.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.
Methodology & Assumptions
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.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.