Refinance Calculator
New payment, monthly saving and the break-even month where closing costs are recovered. 100% free, no signup. Everything runs in your browser.
Loading the tool…
Enter your current loan on one side (balance, rate, remaining years and payment) and the offer you are considering on the other (new rate, new term and closing costs), and this free refinance calculator shows you the numbers that actually decide the question: your new monthly payment, the monthly saving, the break-even month where the closing costs are finally recovered, and, crucially, the total interest you would pay under each loan.
That last comparison is the one most refinance calculators soft-pedal, because it sometimes says "do not do this" and lenders prefer calculators that always say yes. A lower monthly payment can still cost you tens of thousands more over the life of the loan when you restart a fresh 30-year clock on a mortgage you had already paid down for eight years. I built this to show both truths side by side, the cash-flow win and the lifetime cost, because you deserve both before signing anything. If you are still comparing lender offers against each other, my loan comparison tool handles that first step.
How to use
- Enter your current loan balance, interest rate, remaining years and monthly payment.
- Enter the new offer: interest rate, term in years and total closing costs.
- Read your new monthly payment and the monthly saving against your current one.
- Check the break-even month, when your accumulated savings finally cover the closing costs.
- Compare total interest under both loans, including the effect of restarting the term.
- Adjust the inputs to test other offers or a shorter new term.
Why use our refinance calculator?
The break-even month is the single most useful number in a refinance decision, and this calculator puts it front and center. Closing costs in the US typically run two to five percent of the loan amount, so a refinance starts thousands of dollars in the hole and climbs out at the rate of your monthly saving. If the break-even lands at month 28 and you plan to sell in two years, the refinance loses you money no matter how good the new rate sounds. That one sentence has probably saved readers more than any other on this site.
The total interest comparison is where I refuse to flatter you. Suppose you are eight years into a 30-year loan and refinance the remaining balance into a fresh 30-year term. Your payment drops, partly because of the better rate but partly because you just stretched the debt over 30 new years, and the calculator shows you honestly how much extra lifetime interest that stretch can add. Plenty of "great" refinances are really just slower, more expensive loans wearing a smaller payment as a disguise.
Seeing both numbers side by side turns a sales pitch into a decision. A lender's flyer shows the payment drop and stops there. This calculator shows the payment drop, the break-even, and the lifetime cost, and lets you test the alternative that often wins: refinancing into a shorter term, which captures the rate improvement without resetting the clock. Watching the total interest number swing as you change the term is genuinely eye-opening the first time.
Everything runs in your browser with nothing stored and no personal details requested. No email gate, no "get matched with lenders" funnel, no follow-up calls. Refinance calculators are notorious lead-generation traps, and being free of that is precisely why I built my own. For independent guidance on the wider process, the Consumer Financial Protection Bureau's home ownership resources are the best neutral reference I know.
And because the inputs are simple, it doubles as an offer-testing sandbox: paste in each quote as it arrives and the best offer identifies itself in minutes rather than in a spreadsheet you build at midnight.
Who is this tool for?
The classic case is rates dropping after you bought. Say you took a mortgage at 7.2 percent and lenders now advertise 6.1. Enter both loans and you will see whether the saving justifies the closing costs on your actual balance, not on a marketing example. When my own broker sent one of those "time to refi!" emails, running the real numbers showed a 41-month break-even, and I stayed put; that experience shaped this tool.
Homeowners planning to move soon use the break-even month as a yes-or-no test. If you expect to sell in three years and break-even arrives at month 20, the refinance pays for itself with room to spare. If break-even lands past your likely sale date, the answer is no, and the calculator makes that unambiguous before a lender's enthusiasm does.
Borrowers choosing between a lower payment and a faster payoff compare a fresh 30-year term against a 15 or 20-year alternative at the same rate. The shorter term usually raises the payment slightly while slashing lifetime interest, and seeing both totals side by side is how you decide which trade fits your budget. My mortgage payment calculator helps you stress-test whether the higher payment stays comfortable.
People consolidating higher-rate debt sometimes weigh a cash-out refinance. This calculator shows the true cost side of that trade honestly, and pairing it with my debt payoff planner shows whether attacking the debts directly beats rolling them into 30 years of mortgage interest, which it frequently does.
Frequently asked questions
The month when your accumulated monthly savings equal the closing costs you paid to refinance. Before that month you are net negative; after it, the refinance is genuinely saving you money. If you might sell or refinance again before break-even, the deal loses money regardless of how much better the rate is.
Because a refinance usually restarts your term. Stretch the remaining balance over a fresh 30 years and you are paying interest for longer. The rate improvement fights the term extension, and either one can win, which is exactly why this calculator shows lifetime interest for both loans.
Everything you pay to get the new loan: origination and application fees, appraisal, title work, recording fees and any points. In the US these typically total two to five percent of the loan. Use the figure from the lender's loan estimate rather than an advertised guess.
Often, if the payment fits. A 15 or 20-year refinance captures the lower rate without adding years of interest, and total interest falls dramatically. The trade is a higher required payment. Run both versions here and check it against your budget honestly.
Usually only if break-even arrives comfortably before you leave. This is the cleanest use of the break-even month: compare it against your realistic timeline, not your optimistic one.
No. Every calculation runs in your browser, nothing is transmitted or saved, and there is no email capture or lender matching behind it.
No, it is arithmetic, done honestly. The calculator shows you payments, break-even and lifetime interest based on your inputs, but it cannot know your tax situation, plans or risk tolerance. For guidance on the process, the CFPB's independent resources are excellent, and for personal advice, talk to a licensed professional.