United States · Finance
Refinance Calculator
Compare current mortgage payment versus a refinanced loan, closing costs, break-even point, and lifetime interest difference.
Interactive calculator
Check whether refinancing breaks even
Compare the current mortgage payment with a refinanced loan, then see how long closing costs take to recover.
Current total interest
$379,737
Refinanced total interest
$384,014
Lifetime savings after closing costs: -$9,777
Results
Current payment
$2,349
Refinanced payment
$1,969
Monthly savings
$380
Positive value means the new loan lowers monthly cost.
Break-even point
14.5 months
1.2 years to recover closing costs
How to use it
- 01Enter the current mortgage balance, rate, and years left on the existing loan.
- 02Add the new rate, new term, and estimated closing costs for the refinance offer.
- 03Compare the monthly payment change, break-even timing, and total-interest difference.
Result guide
- Monthly savings can be positive even when lifetime savings are weak if the new loan term is extended significantly.
- Break-even point is only shown when the refinanced payment is actually lower than the current payment.
- This page estimates payment tradeoffs only and does not include escrow, taxes, or cash-out scenarios.
About this calculator
A refinance page matters because a lower rate does not automatically mean a better deal. Closing costs and the new loan term can materially change whether the refinance actually improves the situation.
The strongest quick check is break-even timing. It tells a homeowner how long they need to keep the new loan before the upfront refinance cost has been recovered through lower monthly payments.
Frequently asked questions
Why can refinancing lower the monthly payment but still reduce lifetime savings?
Because stretching the loan into a longer term can lower the monthly payment while increasing how long interest is paid overall.
What does the break-even point mean here?
It is the time needed for lower monthly payments to recover the refinance closing costs.
Does this include cash-out refinance effects?
No. This version compares rate, term, and closing costs on the same balance rather than modeling a cash-out scenario.
Method and limitations
This calculator uses the formula and assumptions described on this page. We do not claim independent professional review. Direct references will be listed here when they support a specific rule or data source used by this calculator.
Results are estimates for general information. Verify current rules and assumptions before making financial, tax, or health decisions.
Read our Editorial and Verification Policy →Related calculators
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