mortgage refinance calculator

Compare your current mortgage against a refinance option. This estimate helps you evaluate monthly savings, total cost, and break-even timing.

Remaining Loan Balance ($)

Current Interest Rate (%)

Remaining Term (years)

New Interest Rate (%)

New Loan Term (years)

Estimated Closing Costs ($)

Cash-Out Amount ($, optional)

Optional Monthly Savings Goal ($)

Roll closing costs into the new loan balance

Enter your loan details and click Calculate Refinance.

How to Use This Mortgage Refinance Calculator

A mortgage refinance calculator helps you answer one practical question: Will refinancing actually improve my finances? The rate may look lower on paper, but your true outcome depends on term length, fees, and how long you plan to stay in the home.

This calculator compares your remaining current mortgage against a proposed refinance scenario and estimates:

Your current monthly principal-and-interest payment
Your new estimated monthly payment
Monthly savings (or increase)
Total projected cost over the remaining loan life
Your break-even point based on closing costs

Inputs Explained

Remaining Loan Balance

This is the unpaid principal on your current mortgage. You can usually find it in your latest mortgage statement.

Current Interest Rate and Remaining Term

These values model your current path if you do nothing. The remaining term is especially important: refinancing into a new 30-year mortgage can lower your monthly payment while increasing total interest over time.

New Interest Rate and New Term

These define your refinance offer. A lower rate usually helps, but term length changes the full picture. A 15-year refinance often raises monthly payment but can slash long-term interest.

Closing Costs and Cash-Out Amount

Refinancing is not free. Typical closing costs can include lender fees, title, appraisal, and recording costs. If you choose cash-out refinancing, your loan balance rises, which may offset savings from a lower rate.

What “Break-Even Point” Means

Your break-even point is the number of months needed for monthly savings to recover refinance closing costs. If your break-even is 28 months and you plan to move in 18 months, refinancing may not make financial sense.

Keep in mind this estimate focuses on principal and interest. Real-world costs can include taxes, insurance, private mortgage insurance, and escrow changes.

When Refinancing Usually Makes Sense

Rate-and-term improvement: You can reduce rate enough to recover closing costs quickly.
Loan-term strategy: You refinance from a long term to a shorter term and can afford the payment.
Cash-flow relief: You need lower monthly obligations and accept a longer payoff timeline.
Debt consolidation with discipline: Cash-out can simplify high-interest debt if you avoid re-accumulating balances.

Common Refinance Mistakes to Avoid

Focusing only on monthly payment and ignoring total lifetime cost.
Resetting to a fresh 30-year term repeatedly.
Not comparing APR, lender fees, and discount points across offers.
Ignoring how long you expect to stay in the property.
Skipping a side-by-side comparison of multiple scenarios.

Scenario Planning Tips

For better decisions, run this calculator several times:

30-year refinance at the lowest payment
20-year refinance balancing payment and total cost
15-year refinance maximizing interest savings
With and without rolling closing costs into the loan

Then compare monthly affordability, total cost, and break-even timing. The best option is the one that fits both your budget and your long-term goals.

Important Disclaimer

This tool provides educational estimates, not lending advice. Final numbers from your lender may differ due to credit score, loan type, taxes, insurance, prepaid items, and local closing fees. For a final decision, review a Loan Estimate and Closing Disclosure from your lender.