Mortgage Refinance Calculator - Payment Savings and Break Even
Compare a refinance offer with your current mortgage: payment, savings, interest, and break even.
Tool Interface
A longer new term can lower the monthly payment while raising total interest. Compare the monthly savings with the total interest and the payoff date before deciding. Estimates only: actual offers also include taxes, insurance, and lender fees that this tool does not cover.
How to use
- Enter your current loan: remaining balance, current rate, and years left on the loan.
- Enter the refinance offer: new rate, new term, and closing costs if any.
- Calculate: press Calculate to see both payments, savings, interest, and break even.
- Compare honestly: check total interest and the payoff date, not just the monthly payment.
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About This Tool
About This Tool
The Mortgage Refinance Calculator compares your current mortgage with a refinance offer. Enter your remaining balance, current rate, and years left, then the new rate, new term, and closing costs. The tool shows both monthly payments, monthly savings, total interest, break even months, and how the payoff date changes.
Key Features
- Current and new monthly payments side by side
- Monthly savings, or monthly increase when the new payment is higher
- Total interest comparison across the full remaining term
- Break even months for recovering closing costs
- Payoff date comparison, so a longer term does not hide extra interest
- Free, private, and fully in your browser with no signup
How to Use
- Enter your current loan: remaining balance, current rate, and years left.
- Enter the refinance offer: new rate, new term, and closing costs if any.
- Press Calculate to see both payments, savings, interest, and break even.
- Compare total interest and the payoff date, not just the monthly payment.
Frequently Asked Questions
What does refinancing a mortgage mean?
Refinancing means replacing a current mortgage with a new loan, usually to get a lower rate, a different term, or both. The new loan pays off the old one, and the borrower then repays the new loan.
How is break even calculated?
Break even months equal closing costs divided by monthly savings, rounded up. If closing costs are 6000 and monthly savings are 400, break even is 15 months. After that point, the savings have covered the costs.
Can a lower monthly payment still cost more overall?
Yes. A longer new term spreads payments over more years, which can lower the monthly amount while raising total interest. That is why the tool shows total interest and the payoff date next to the monthly savings.
What costs are not included?
The tool covers principal and interest only. Property taxes, home insurance, private mortgage insurance, and lender fees are not included, so an actual offer may differ from these estimates.
When does refinancing make sense?
It often makes sense when the new rate is clearly lower, monthly savings recover closing costs well before you plan to move or repay, and total interest does not rise from a much longer term.