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Mortgage Refinance Calculator

Should you refinance? See your monthly savings, break-even point, and lifetime savings.

Current Mortgage

$
%

New Mortgage

%
$

Refinance Analysis

Current Monthly Payment

$2,120.34

New Monthly Payment

$1,703.37

Monthly Savings

$416.97

Break-Even

12.0 months

Lifetime Savings

$17,889

Refinancing looks like a good idea. You'll break even quickly and save money overall.

Researched by CentCalc Financial Editorial TeamData: Break-even formula + monthly amortization

How This Is Calculated

This calculator compares your current mortgage against a potential refinance to determine whether refinancing is financially worthwhile.

Monthly savings = Current monthly payment − New monthly payment. Both are calculated using the standard mortgage amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is principal, r is monthly interest rate, and n is total number of payments.

Break-even point = Closing costs ÷ Monthly savings. This tells you how many months you need to stay in the home for the refinance to pay for itself. A break-even of 24 months or less is generally considered attractive.

Lifetime savings = (Remaining cost of current loan) − (Total cost of new loan including closing costs). Note that if you extend your loan term (e.g., refinancing a 22-year remaining balance into a new 30-year loan), your monthly payment may drop but your lifetime savings could be negative — you pay more overall due to the extended term.

Uses standard mortgage amortization formula. Closing costs are user-provided. Does not include PMI, property taxes, or insurance changes. Estimates only.

See our full methodology for every formula, data source, and assumption.

Frequently Asked Questions

When does it make sense to refinance a mortgage?
Refinancing typically makes sense when you can lower your rate by at least 0.5–1% and plan to stay in the home past the break-even point. It can also make sense to switch from adjustable to fixed rate, or to shorten your loan term.
What is the break-even point in refinancing?
The break-even point is how long it takes for your monthly savings to recoup the closing costs. If closing costs are $5,000 and you save $200/month, your break-even is 25 months. If you plan to sell before then, refinancing may not be worth it.
How much are refinance closing costs?
Refinance closing costs typically range from 2% to 6% of the loan amount, averaging $5,000. Costs include appraisal, title insurance, origination fees, and recording fees.
Should I refinance to a shorter loan term?
Refinancing from 30 to 15 years can save tens of thousands in interest, but your monthly payment will increase significantly. Alternatively, you can make extra payments on your existing loan for similar savings with more flexibility.
Does refinancing reset my loan term?
Yes. Refinancing replaces your old mortgage with a new one. If you have 22 years left and refinance into a new 30-year loan, the term resets to 30 years — lowering your payment but potentially increasing total interest paid.

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Estimates only. Actual refinance rates, closing costs, and terms vary by lender and credit profile. Does not include PMI or tax implications. Consult a mortgage professional.