Loading calculator…
What this calculator does
Test whether replacing a mortgage could reduce payments or total interest.
How to use this calculator
- Enter current loan details and the proposed refinance rate, term, and fees.
- Review the calculation assumptions before using the result.
- Compare savings against the refinance break-even point.
How to calculate
Enter the values requested by the refinance calculator.
Worked example
With the example values shown above, the refinance assessment is Less expensive, and the new monthly payment is $1,791.08, and the monthly savings is $8.92.
Understanding your result
Compare savings against the refinance break-even point.
- A lower payment can still mean more lifetime interest.
- Double-check values and units before calculating.
This calculator is educational and is not financial or medical advice.
Frequently asked questions
What does this refinance calculator do?
Test whether replacing a mortgage could reduce payments or total interest.
How do I use this refinance calculator?
Enter current loan details and the proposed refinance rate, term, and fees.
What does the result mean?
Compare savings against the refinance break-even point.
What should I check before relying on it?
A lower payment can still mean more lifetime interest.
What is the refinance break-even point?
It's how long it takes for the monthly savings from refinancing to cover the upfront closing costs — refinancing tends to be worth it only if you plan to keep the loan longer than that break-even period.
Can refinancing lower my payment but still cost more overall?
Yes — extending the loan term as part of a refinance can lower the monthly payment while increasing total lifetime interest, since the balance accrues interest over more months even at a lower rate.