Free mortgage refinance calculator — should I refinance?
Use this refinance mortgage calculator to answer should I refinance? Enter your current loan balance, interest rate, and remaining term, then a new rate, new term, and estimated closing costs. See monthly principal & interest (P&I) savings, break-even months, and lifetime interest saved vs keeping your current loan. For a new home purchase with taxes and insurance, use the mortgage calculator; for P&I-only loans see the loan calculator.
How to use this refinance calculator
- Under current mortgage, enter remaining balance, APR, and remaining term (years or months).
- Under new refinance loan, enter the new rate and new term (often 15 or 30 years, or match remaining months).
- Enter closing costs (upfront fees—many estimates fall around 2–6% of the balance).
- Read monthly payment change, break-even, total interest on each loan, and the side-by-side comparison; copy link to share your scenario.
Example: $320,000 balance, 7% → 6%, 28 years left, $4,000 closing
Keeping 28 years on the current loan vs refinancing the same $320,000 to 6% for a new 30-year term lowers P&I by about $200/month. With $4,000 in closing costs, break-even is roughly 20 months of those savings. If you stay past break-even, cumulative savings grow; if you sell sooner, payment savings may not cover the upfront cost. A shorter new term can save total interest even when the monthly payment rises—check lifetime interest saved in the results.
Refinance break-even formula
Break-even months ≈ Closing costs ÷ Monthly P&I savings
Only applies when the new payment is lower than the current one. If you refinance into a shorter term, total interest may still fall while the monthly payment goes up—then break-even on payment savings alone does not tell the whole story. Compare total interest and how long you plan to keep the loan.
Refinance rates, closing costs, and term length
Refinance rates change with market conditions and your credit profile. This page does not pull live rates—you enter the quote you are comparing. Closing costs include lender fees, appraisal, title, and other settlement charges; get a Loan Estimate from your lender for your actual number. Extending the term (for example refinancing with 28 years left into a new 30-year loan) can lower P&I but add interest over time; shortening the term does the opposite. Use the comparison panel to see both payments and total interest.
Frequently asked questions
Should I refinance my mortgage?
Compare monthly P&I savings and break-even on closing costs to how long you will keep the loan. If savings beat costs before you sell or pay off, refinancing may be worth it—also check total interest if you change the term.
What is the refinance break-even point?
Months until monthly P&I savings equal upfront closing costs. After break-even, net savings from the lower payment accumulate until the loan ends.
How much does it cost to refinance?
Varies by lender and state; many plans use roughly 2–6% of the loan amount as a planning range. Enter your lender’s estimate in the calculator.
How is this different from the mortgage calculator?
Mortgage calculator: home price, down payment, PITI on a new loan. Refinance calculator: existing balance, current vs new rate and term on the same balance.
Can I share my refinance scenario?
Use copy link above the form to share the same inputs with a co-borrower or advisor.