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.
Housing
Loan-to-Value Calculator
Calculate loan-to-value ratio, current home equity, and the balance needed to reach 80% LTV across one or more mortgage liens.
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.
How to read this result
Monthly savings alone do not decide the refinance. The stronger question is whether the new loan improves payment, term, or flexibility enough to justify the closing costs.
Break-even matters most when costs are paid upfront and you expect to keep the loan long enough to recover them. If the break-even window is longer than your likely timeline, the refinance case weakens fast.
Use this result to compare refinance against the alternatives, not in isolation. For some borrowers the better next step is keeping the current loan, paying extra, or using equity differently.
Common mistakes
Assuming a lower rate automatically means a better deal. A reset term or financed closing costs can still increase long-run cost.
Ignoring how long you expect to keep the home or loan. Break-even is much less useful if the property may be sold or refinanced again before you reach it.
Comparing only the monthly payment instead of the payment, total cost, and new loan balance together.
Limits of this estimate
Refinance Calculator is a planning estimate based on the values entered here, not a quote, approval decision, tax filing, account statement, or investment recommendation.
The result assumes the entered rates, costs, income, payments, balances, or timelines stay fixed unless the page has a dedicated input for changing them.
Real outcomes can change because of fees, taxes, insurance, lender rules, account restrictions, market movement, local costs, or timing differences outside this simplified scenario.
Notes
This tool focuses on the financing decision itself and does not include taxes, insurance, or escrow changes.
Source notes
Visible input model
This page calculates refinance calculator results from the visible inputs: Current balance, Current rate, Remaining term, New rate, New term, Closing costs, Closing cost handling. No hidden account, lender, tax, or live market data is pulled into the estimate.
Page formula and assumptions
The result follows the formula and assumptions described on this page, then formats the output with Utility Row's finance calculation helpers.
Scenario comparison use
Use the output to compare assumptions before checking a real statement, lender disclosure, tax rule, or account-specific source.
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
Found a problem on this page?
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.