Mortgage
Mortgage Calculator
Estimate your monthly mortgage payment, including principal and interest.
Use CalculatorRefinance Calculator
Use this mortgage refinance calculator to compare your current loan with a new rate and term. Enter your balance, current rate and payment, the new loan terms and your closing costs to see the new payment, monthly savings, break-even month and estimated total savings.
How it works
Refinancing costs: a refinance usually comes with closing costs (such as appraisal, title and lender fees) and sometimes points paid to lower the rate. Enter both so the comparison reflects what you'd pay upfront.
Monthly savings: your current loan is projected forward using your current principal-and-interest payment. The new loan uses the standard fixed-rate payment formula on the current balance at the new rate and term. The difference is your monthly savings.
Break-even month: upfront costs divided by monthly savings, rounded up. If you expect to sell or refinance again before that month, you may not recover the costs.
Refinancing doesn't save money in every situation. Starting a new, longer term can lower the payment but raise total interest, and high costs can outweigh a small rate drop — so check the total savings figure, not just the payment. See the full schedule with the amortization calculator, compare offers that include fees with the APR calculator, or estimate a new purchase with the mortgage calculator.
Formula & methodology
Break-even (months) = (closing costs + points) ÷ (current payment − new payment)
- New payment
- B × r(1 + r)^n / ((1 + r)^n − 1)
- B
- Current balance
- r, n
- New monthly rate and number of payments
Costs are assumed to be paid upfront, not rolled into the new loan.
Use principal and interest only for the current payment, without escrow.
Illustrative example
$300,000 balance at 7.5% refinanced to 6.25%
Hypothetical assumptions: a $300,000 balance at 7.5% with 27 years left (a principal-and-interest payment of about $2,162.20), refinanced into a new 27-year loan at 6.25% with $4,500 of closing costs and $1,000 of points.
The new payment is about $1,919.05 — roughly $243.16 less per month.
With $5,500 of upfront costs, the break-even point is month 23. Keeping the loan to the end, estimated total savings are about $73,282.
If the same refinance reset the term to 30 years instead, the payment would fall further but total interest could rise — try both terms in the calculator.
Hypothetical figures for illustration only.
Frequently asked questions
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