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Refinance Calculator

See your true refinance savings

Compare the mortgage you have with a new one. Enter what you owe today plus the rate and costs you’ve been quoted, and we’ll show how much you’d save each month, how long it takes to earn back the cost of switching, and whether it pays off over the life of the loan.

  1. A new loan pays off the old one

    Refinancing replaces your mortgage with a new loan, usually to get a lower rate or a different loan length. Your property tax and insurance stay the same, so we compare only the loan part of the payment: .

  2. Switching has a price

    A new loan comes with , often 2% to 3% of the loan. The is how many months of savings it takes to earn that back. If you might sell or refinance again before then, the switch likely loses money.

  3. A lower payment isn’t always cheaper

    A new 30-year loan restarts the clock, so you can pay less each month but more interest in total. The lifetime and figures also count taxes and what your cash could earn elsewhere.
Your latest mortgage statement has your balance, rate, and months left. A lender’s Loan Estimate has the new rate and closing costs. The Advanced tax settings can wait. How to refinance your mortgage walks through the process.
This compares principal and interest only. Property taxes and homeowners insurance don’t change with a refinance, so they don’t affect the break-even. Mortgage insurance can: if your home has gained value, a refinance may drop entirely (once the new is 80% or less), while refinancing into an FHA loan adds upfront and annual . If your mortgage insurance will change, add the monthly difference to (or subtract it from) the savings shown here.
Your current loan
$
%
The new loan
LOAN LENGTH (YRS)
%
$
$
Taking cash out (optional)

Leave this at 0 for a plain refinance. Enter an amount to model a , where you borrow extra against your home and receive it at closing.

$
New loan amount: $340,000 · $6,500 due at closing

Monthly payment savings

$413

Principal and interest: $2,424 → $2,011 · breaks even in 1yr 4mo

Interest left: current loan
$416,396
Interest: new loan
$384,042
After tax: current· $2,345 tax savings
$414,051
After tax: new· $0 tax savings
$384,042

New monthly payment

$2,011

principal + interest, was $2,424

Monthly savings

$413

lower payment

Break-even

1yr 4mo

to earn back $6,500 upfront

Break-even after tax & returns

1yr 8mo

NPV, money earning 7%

After-tax interest saved

$30,009

lifetime, before closing costs

Worth today (NPV)

$37,426

all costs and savings, in today’s dollars

What this means

Refinancing would lower your loan payment by $413 a month, from $2,424 to $2,011. You’d pay $6,500 at closing, and it takes about 1 year 4 months of savings to earn that back. That’s your : if you might sell or refinance again before then, this refinance would cost you money. Over the full loan you’d pay $32,354 less in total interest. Counting the tax deduction and what your cash could earn elsewhere (7% a year), the refinance is worth about $37,426 to you in today’s dollars ().

Compare real quotes from two or three lenders using their Loan Estimates.

What would make this refinance better

A 5.625% rate instead of 5.875%break-even in 1 year 2 months+$54/mo
Negotiate $1,000 off closing costsbreak-even in 1 year 2 months2mo sooner

Rates and fees vary by lender, so get several quotes.

Payment savings After-tax savings In today’s dollars (NPV)
-$6,144$19,563$45,270$70,978$96,685$122,393Mo 0Mo 60Mo 120Mo 180Mo 240Mo 300Mo 360

Each line is your running total of savings since the refinance, minus the $6,500 paid at closing. When you pay costs at closing, the lines start below zero, and the month a line crosses zero is its break-even. The after-tax line accounts for the mortgage interest deduction, and the line also discounts future savings at 7% a year. Use it if you could otherwise invest the money.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

The terms on a refinance quote, plus the break-even and NPV ideas the results above use.

Refinance (rate-and-term)
Replacing your mortgage with a new loan to change the rate, the loan length, or both. The new loan pays off the old one.
Cash-out refinance
A refinance where the new loan is bigger than what you owe and you receive the difference in cash at closing. It usually carries a slightly higher rate.
Principal and interest
The loan part of your monthly payment. Property tax and insurance don’t change when you refinance, so this calculator compares only principal and interest.
Closing costs
Fees to get the new loan, such as lender, title, appraisal, and recording fees. On a refinance they typically run 2% to 3% of the loan amount. More
Discount points
An optional upfront fee for a lower rate. One point costs 1% of the loan amount and typically lowers the rate by about 0.25%. More
Break-even point
How many months of payment savings it takes to earn back what you paid at closing. If you’ll sell or refinance again before then, the refinance costs you money.
NPV (net present value)
All the costs and savings converted into today’s dollars, counting what your cash could earn if invested instead. A positive NPV means the refinance beats leaving the money invested.
ARM (adjustable-rate mortgage)
A loan with a fixed rate for the first few years (5 years on a 5/1), then a rate that changes on a schedule. Caps limit how far it can move. More
Fully indexed rate
The rate an ARM moves toward after its fixed period: a market index such as SOFR plus the lender’s margin. More
Itemizing vs the standard deduction
Mortgage interest lowers your taxes only if your itemized deductions add up to more than your standard deduction. If you take the standard deduction, the interest saves you no tax.

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