Refinance Calculator
- New payment
- $1,798.65
- Break-even (months)
- 21
Compare your current mortgage to a new one and find the break-even point on closing costs.
This is an educational estimate, not financial advice. Figures exclude taxes, fees, and individual circumstances. Verify with a licensed professional before making money decisions.
How to use this calculator
- Enter your current balance and interest rate.
- Enter the new rate and term you are considering.
- Add the refinance closing cost.
- Read the monthly savings and the break-even month — refinancing pays off if you stay past it.
Formula
-
Monthly savings— old payment − new payment -
Break-even— months of savings to recoup closing costs
Worked example
Refinancing a $300,000 balance from 7.2% to 6.0% on a new 30-year term cuts the payment from about $2,036 to $1,799 — saving $238/month. With $5,000 in closing costs, you break even in about 21 months.
Frequently asked questions
What is break-even?
The number of months of savings needed to recoup your refinance closing costs.
When is refinancing worth it?
Generally when you'll stay past the break-even point and the rate drop is meaningful.
Does resetting the term matter?
Yes — extending to a new 30-year term can raise total interest even at a lower rate.
Are there other costs?
Appraisal, title, and lender fees make up closing costs; some can be rolled in.
Does this include taxes/insurance?
No — it compares principal and interest only.