CalcQuick

Refinance Calculator

Compare your current mortgage to a refinance offer and see if refinancing makes financial sense.

Current loan

$
%

New loan

%
$

Refinance savings

Extra interest cost

$52,908.73

New monthly payment

$1,927.81

Monthly savings

$192.53

Break-even

26 months

Current remaining interest

$336,100.16

Results are estimates. Include all closing costs and fees for an exact comparison.

How to use

  1. Enter your current loan balance, interest rate and years remaining.
  2. Enter the new interest rate and loan term you are considering.
  3. Add estimated closing costs.
  4. Review monthly savings, break-even point and total interest saved.

Formula

Monthly savings = Current monthly payment − New monthly payment.

Break-even months = Closing costs ÷ Monthly savings. This tells you how long you need to keep the new loan before the savings cover the refinance cost.

Total interest saved = Remaining interest on current loan − Total interest on new loan.

Example

For a $300,000 balance at 7% with 25 years left, refinancing to 6.5% over 30 years with $5,000 closing costs:

Monthly payment drops from about $2,120 to about $1,896, saving roughly $224 per month. However, extending the term may increase total interest depending on how long you keep the loan.

Frequently asked questions

When does refinancing make sense?
Refinancing usually makes sense when you can lower your rate enough to cover closing costs within a few years, or when you need to shorten your term or switch from ARM to fixed rate.
What are typical closing costs?
U.S. mortgage closing costs typically range from 2% to 5% of the loan amount, including appraisal, title insurance, origination fees, recording fees and prepaid items.
Should I refinance to a shorter term?
A shorter term usually has a lower rate and less total interest, but a higher monthly payment. Make sure the payment fits your budget.
Does this calculator include cash-out refinancing?
No. This calculator compares rate-and-term refinancing. For cash-out refinance, use the result to manually compare your new balance after taking cash out.
What is the break-even point on a refinance?
Break-even is when cumulative monthly savings equal closing costs. This calculator shows how many months until you recoup refinance fees.

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