Refinance tools
Mortgage Refinance Calculator
Compare your current loan with a new rate and term. See monthly savings, interest saved, break-even timing, and lifetime impact—including closing costs and optional cash-out.
How to use this refinance calculator
Start with your current loan balance, interest rate, and how much time is left on the loan (in years or months). Then enter the new rate you expect and choose a 15-, 20-, or 30-year term. Add estimated closing costs so the break-even calculation is realistic. If you plan to take equity out, enter a cash-out amount—the new loan balance increases by that figure.
The results update instantly. Focus first on monthly savings and break-even months: if you expect to move before you recover closing costs, a lower payment may not be worth it. Next, compare total interest on the current path versus the new loan, then review lifetime savings, which nets remaining current payments against new loan payments plus closing costs (minus cash-out received).
Use this tool alongside our mortgage PITI calculator if you also need taxes, insurance, and PMI in a full housing payment, or the affordability calculator when cash-out changes your broader budget.
This is an estimate only and not financial advice. Points, lender fees, taxes, insurance, and credit qualifications can change your real refinance outcome.
What refinance numbers mean
Current and new monthly payments here are principal-and-interest estimates based on the standard amortization formula. They do not automatically include escrow items such as property tax or homeowners insurance. Monthly savings is simply the difference between those two payments. Total interest saved compares interest paid over the remaining current schedule with interest on the full new loan.
Break-even divides closing costs by monthly savings when savings are positive. Lifetime savings compares the cash cost of keeping your current loan versus refinancing: remaining current payments versus new loan payments plus closing costs, adjusted for cash-out. Quotes from lenders can differ because of points, credits, discount fees, credit-based pricing, and whether costs are financed.
Refinance calculator FAQ
When does refinancing make sense?
Refinancing is often worth a closer look when you can lower your rate enough to cover closing costs within a timeframe you plan to keep the home, shorten your term without straining cash flow, or access equity through a cash-out refinance for a clear purpose.
What is the break-even point?
Break-even is how many months of monthly payment savings it takes to recover upfront closing costs. If you sell or refinance again before that point, the upfront costs may outweigh the payment benefit.
Why can my monthly payment drop but lifetime savings look smaller?
Extending the term (for example resetting to a new 30-year loan) can lower the payment while increasing the number of months you pay interest. Always compare both monthly savings and lifetime cost.
How is cash-out handled in this calculator?
Cash-out is added to your current balance to form the new loan amount. Lifetime savings treats cash-out as money you receive now, which reduces the net cost of the refinance path.
Are closing costs financed here?
This estimate treats closing costs as an upfront cash expense used for break-even and lifetime savings. Some lenders let you roll costs into the loan—adjust the new balance manually if you want to model that scenario.