Mortgage Refinance Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

$
%
$
%
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

Weighing a mortgage refinance in 2026 means answering one question first: does the new loan actually leave you better off? Feed in your current mortgage and a prospective replacement, and you get the new monthly payment, the amount you'd save each month, and the point at which those savings finally cover your closing costs.

Behind the scenes, a standard amortization formula generates the monthly payment for both the existing loan and the proposed one. Closing costs then get folded in to pinpoint the break-even date, and the tool projects total interest savings by comparing what you'd pay over the rest of your current loan against the new one.

Chasing the lowest interest rate alone can be a trap, because closing costs determine whether a lower rate ever pays for itself. Shortening the loan term is another place borrowers stumble: even at a reduced rate, a shorter term pushes the monthly payment higher, so confirm the new schedule actually fits what you're trying to accomplish.

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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