Mortgage Refinance Calculator

Should you refinance? Calculate new payment, monthly savings, break-even point, and total interest savings over the life of the loan.
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%
$
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New Loan Term
$

New Monthly Payment

$1,419.47

Monthly Savings

$160.53

Break-Even Month

Month 32

2.7 years

Total Interest Savings

-$37,010.10

Total Cost Comparison

Keep Current Loan
Remaining Payments$474,000.00
Total Interest$224,000.00
Refinance
Total Payments$511,010.10
Closing Costs$5,000.00
Total Cost (incl. closing)$516,010.10
Total Interest$261,010.10
Additional Cost from Refinance$42,010.10

Use the Mortgage Refinance Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Considering a mortgage refinance in 2026? Our Mortgage Refinance Calculator helps you determine if it's the right financial move. Quickly compare your current loan to a potential new one, revealing your new monthly payment, how much you could save each month, and when you'll break even on closing costs.

This calculator uses a standard amortization formula to determine monthly payments for both your current and potential new mortgage. It then factors in closing costs to calculate the break-even point and projects total interest savings over the remaining life of your current loan versus the new loan.

Don't just focus on the lowest interest rate; always factor in closing costs when evaluating a refinance. A common mistake is to refinance for a shorter term, which increases monthly payments, even with a lower rate, so ensure the new term aligns with your financial goals.

Example: Refinancing a $300,000 Mortgage

  1. 1 Step 1: Input your current mortgage details (e.g., remaining balance of $250,000, 3.8% interest rate, 20 years remaining) and potential new mortgage details (e.g., $250,000 loan amount, 3.2% interest rate, 30-year term, $4,500 in closing costs).
  2. 2 Step 2: The calculator computes your current monthly payment ($1,471.29), new monthly payment ($1,085.34), and the difference ($385.95 in monthly savings). It also calculates the break-even point on closing costs (approximately 11.66 months).
  3. 3 Step 3: Your results show estimated monthly savings of $385.95, a break-even point of under a year, and potential total interest savings of over $30,000 over the life of the loan.
  4. 4 Step 4: This indicates a strong financial incentive to refinance, given the significant monthly savings and quick recoup of closing costs. However, always consider your long-term financial goals and consult with a financial advisor before committing.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

When does it make sense to refinance a mortgage?
A common rule of thumb is to refinance when you can lower your rate by at least 0.5-1%. Also consider how long you plan to stay in the home versus the break-even point (closing costs divided by monthly savings).
How much does it cost to refinance a mortgage?
Refinance closing costs typically run 2-5% of the loan amount, or $4,000-$10,000 on a $200,000 loan. Costs include appraisal, title search, origination fee, and recording fees.
Does refinancing restart my 30-year mortgage?
It can. Refinancing into a new 30-year term lowers your payment but extends payoff. You can refinance into a shorter term (15 or 20 years) to avoid this, or make extra payments on a 30-year to pay it off faster.

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