Refinance Calculator
Is refinancing worth it? Compare payments, savings and breakeven.
Your numbers
Breakdown
How this calculator works
Refinancing trades your current mortgage for a new one — usually to grab a lower rate, but sometimes to shorten the term or tap equity. The pitch always highlights the lower monthly payment; the catch is closing costs, typically 2–5% of the loan, which you pay upfront. This refinance calculator does the full comparison: it computes your current payment, the new payment, the monthly savings, and — critically — the breakeven point, the number of months of savings needed to recover the closing costs.
The breakeven number is the whole decision. If you will sell or move before breakeven, refinancing loses money despite the lower rate. Also watch the term trap: refinancing a 25-year-remaining loan into a fresh 30-year loan lowers the payment but can increase lifetime interest even at a lower rate — the calculator shows total interest for both loans so you can see it. A good rule of thumb: refinance when the rate drops enough that breakeven lands well inside how long you plan to stay, and consider a shorter new term if the payment still fits your budget.