Refinance Calculator
Check whether a lower rate or shorter term is likely to justify the closing costs of a new loan.
Calculator
Refinance Calculator
Enter the remaining loan principal today.
Use the annual rate on your existing mortgage.
Enter the years left on the current loan.
Use the annual rate offered on the refinance.
Enter the length of the refinanced loan.
Enter lender fees and other refinance closing costs.
Choose whether the closing costs are paid upfront or rolled into the refinanced balance.
Example values are loaded.
Result
Your result
Refinancing this balance would change the monthly payment from $2,004.41 to about $2,033.62.
New monthly payment
$2,033.62
Monthly savings
-$29.21
Break-even
No break-even
Refinance comparison
Check these inputs
- Under these assumptions, the refinance does not lower the monthly payment.
Next steps
Compare before you move on
Most people use one calculator to answer the first question and a related tool to pressure-test the decision.
Borrowing
Mortgage Calculator
Estimate monthly mortgage payments with principal, interest, taxes, insurance, PMI, HOA, and other recurring housing costs included.
Borrowing
Home Affordability Calculator
Estimate the home price your monthly housing budget could support after down payment, taxes, insurance, HOA, optional PMI, other recurring housing costs, and estimated closing cash.
Borrowing
Home Equity Loan Calculator
Estimate a fixed monthly home equity loan payment, total interest, and how the new second-lien balance affects remaining equity.
What this calculator shows
A refinance can lower the monthly payment, shorten the payoff period, or both, but closing costs and term resets matter.
Closing costs also need to be handled explicitly because rolling them into the new balance changes the payment math and the true long-run cost.
How to use it
- 1. Enter the remaining principal, current rate, and years left on the existing mortgage.
- 2. Add the new refinance rate, the new term, and the closing costs.
- 3. Choose whether the closing costs are paid upfront or financed into the new balance, then review the payment change and break-even timing.
Formula and assumptions
Both payment scenarios use the standard amortized payment formula, but the refinance balance changes when closing costs are financed.
Break-even months equals closing costs divided by monthly savings only when the costs are paid upfront and the new payment is lower.
Notes
This tool focuses on the financing decision itself and does not include taxes, insurance, or escrow changes.
Worked example
A remaining $285,000 balance refinanced from 7.1% to 5.95% over 20 years is a practical payment-and-break-even comparison.
This example uses the default sample inputs loaded on reset. It does not update with the live calculator entries above.
New monthly payment
$2,033.62
Monthly savings
-$29.21
Break-even
No break-even
Feedback
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Report confusing fields, broken math, or missing assumptions with the exact inputs you used so the issue can be reproduced.
FAQ
FAQ
Why can a refinance lower the rate but still raise the payment?
If the new term is much shorter, the balance is repaid over fewer months, which can raise the payment even at a lower rate.
FAQ
Should I pay closing costs upfront or finance them?
Paying upfront preserves a lower loan balance, while financing the costs can preserve cash but usually raises the new payment and total interest.