Refinance Calculator

This refinance calculator helps you compare your existing mortgage with a proposed refinance so you can judge whether the lower rate actually produces a meaningful financial benefit.

A refinance can lower the payment, reduce lifetime interest, or improve monthly cash flow, but closing costs and term resets can change the picture materially.

The most useful outputs are not just the new payment, but the break-even timing and the interest difference over the full remaining life of each option.

Enter your current balance, current rate, and the number of years remaining on the existing mortgage.

Then enter the proposed new rate, new term, and estimated closing costs.

Compare monthly savings with break-even timing before assuming the refinance is automatically beneficial.

Both the current and refinance scenarios are modeled as standard amortizing loans from the same starting balance.

Monthly savings equals the current scheduled payment minus the new scheduled payment.

Break-even months equals closing costs divided by monthly savings when monthly savings are positive.

A refinance that lowers the rate can still be unattractive if closing costs are high and you expect to sell or move before break-even.

On the other hand, even a modest rate reduction can be valuable on a large balance if you plan to keep the mortgage for years.

Positive monthly savings helps current cash flow, but break-even timing shows how long you need to keep the loan for the refinance to justify its upfront cost.

If the new term is longer than the remaining term on the current mortgage, payment relief may come at the cost of paying interest for longer.