🏠 Mortgage Refinance Calculator
Compare your current loan with a refinance offer — payment, break-even, and true lifetime cost.
Cumulative savings over time
Net position = what you’d have paid on your current loan (payments + remaining balance) minus the refinance (payments + remaining balance + upfront costs), plus any cash-out received. It crosses zero at your break-even point.
Side-by-side comparison
| Current loan | Refinance | Difference |
|---|
What if the rate were different?
Tap a scenario to apply itAmortization schedule
Yearly totals. Payments are principal & interest only — property tax, homeowners insurance and PMI are not included. Estimates for educational purposes only, not a loan offer.
Mortgage Refinance Calculator: Find Out If Refinancing Actually Saves You Money
Compare your current loan with a new one in seconds. See your new monthly payment, how much you save, your break-even month, and the true lifetime cost — then learn exactly when a refinance makes sense.
Refinancing is usually worth it when you'll stay in your home longer than your break-even point — your closing costs divided by your monthly savings. For example, $6,000 in closing costs with $200/month in savings breaks even in 30 months. If you plan to stay 5+ years, that refinance likely pays off. Use the calculator below to run your own numbers.
Mortgage Refinance Calculator
Enter your current loan details on the left and the refinance offer you're considering. Results update when you press Calculate.
🏠 Refinance Savings & Break-Even Calculator
Payments show principal & interest only (taxes, insurance and PMI excluded). "Net savings over your stay" compares total payments plus remaining balance after the years you plan to stay, so it counts the extra debt from rolled-in costs or cash-out. Estimates only — not a loan offer.
How This Refinance Calculator Works
A refinance replaces your existing mortgage with a new loan — ideally at a lower rate, a better term, or both. To judge whether it's worth it, the calculator compares two paths side by side:
- Keep your current loan: your existing balance and rate, paid off over the years you have left.
- Refinance: a new loan for your balance (plus any rolled-in closing costs or cash-out) at the new rate and term.
It uses the standard amortization formula lenders use to calculate principal-and-interest payments, then works out four numbers that actually matter for your decision: monthly savings, break-even month, net savings over the time you'll own the home, and lifetime interest.
The Refinance Break-Even Formula
The single most useful number in any refinance decision is your break-even point. It tells you how many months of savings it takes to repay what you spent to refinance.
Example: You owe $300,000 at 7.50%. Refinancing to 6.25% on a new 30-year loan drops your principal-and-interest payment from about $2,098 to about $1,847 — a savings of roughly $250 a month. With $6,000 in closing costs, you break even in 24 months. Every month after that is pure savings.
How Much Should Rates Drop Before You Refinance?
You've probably heard the "1% rule" — refinance only if you can cut your rate by a full percentage point. It's a decent starting point, but it ignores your closing costs and how long you'll stay. The table below shows what different rate drops are worth on a $300,000 balance at 7.50%, refinanced into a new 30-year loan with $6,000 in closing costs.
| New rate | Rate drop | New P&I payment | Monthly savings | Break-even | Time to recoup costs |
|---|---|---|---|---|---|
| 7.00% | 0.50% | $1,996 | $102 | 59 months | |
| 6.75% | 0.75% | $1,946 | $152 | 40 months | |
| 6.50% | 1.00% | $1,896 | $201 | 30 months | |
| 6.25% | 1.25% | $1,847 | $250 | 24 months | |
| 6.00% | 1.50% | $1,799 | $299 | 20 months |
Principal & interest only. Current payment on $300,000 at 7.50% over 30 years ≈ $2,098/month. Shorter bars = faster payback.
The takeaway: even a 0.75% drop can be worthwhile if you're staying 5+ years, while a 1.5% drop pays for itself in well under two years. Your break-even, not a rule of thumb, should make the call.
What Does It Cost to Refinance in 2026?
The Consumer Financial Protection Bureau's rule of thumb is that refinance closing costs run 2% to 5% of the loan amount — $6,000 to $15,000 on a $300,000 loan. In practice, costs vary enormously by state and lender. A 2026 report from closing-cost data provider LodeStar put the national average for a refinance at about $2,207 (0.67% of the loan), while high-cost states such as New York averaged over $10,500 because of recording fees and mortgage taxes. Always compare the Loan Estimate you receive, not a national average.
| Fee | Typical range | What it covers | Negotiable? |
|---|---|---|---|
| Origination / underwriting | 0.5%–1% of loan | Lender's charge to process the loan | ✅ Often |
| Discount points | 1% of loan per point | Optional — buys a lower rate | ✅ Optional |
| Appraisal | $400–$700 | Confirms the home's current value | ⚠️ Sometimes waived |
| Title search & lender's title policy | $700–$2,000+ | Verifies ownership, protects the lender | ✅ Shop providers |
| Recording fees & mortgage taxes | $100 to several thousand | State/county charges to record the new loan | ❌ Set by law |
| Credit report & flood certification | $30–$100 | Background checks | ❌ Rarely |
| Prepaid interest, taxes & insurance | Varies | Funds your new escrow account | — Not a true cost |
Ranges are illustrative. Your old escrow balance is usually refunded after the old loan is paid off, which offsets much of the prepaid items.
Types of Mortgage Refinance
Not every refinance has the same goal. Pick the one that matches what you're trying to achieve, then plug the numbers into the calculator.
Rate-and-Term Refinance
The classic refinance: replace your loan with one that has a lower rate, a different term, or both. Best for lowering your payment or total interest.
Most commonCash-Out Refinance
Borrow more than you owe and take the difference in cash — often for renovations or high-interest debt. Rates are usually a bit higher, and you're adding to your mortgage debt.
Uses home equityStreamline Refinance (FHA / VA IRRRL)
Government-backed borrowers can often refinance with less paperwork and frequently no new appraisal. FHA and VA programs have their own net-benefit rules.
Less paperworkARM-to-Fixed Refinance
Swap an adjustable-rate mortgage for a fixed rate before it resets higher. The goal here is payment certainty, not always the lowest rate.
Stability15-Year vs 30-Year Refinance: Which Saves More?
A refinance can also be a tool to pay your home off faster. Shorter terms come with lower rates but higher monthly payments. Here's the trade-off on a $300,000 balance:
| Option | Rate | Monthly P&I | Total interest | Interest vs keeping 7.50% loan |
|---|---|---|---|---|
| Keep current 30-yr | 7.50% | $2,098 | $455,152 | |
| Refinance to 30-yr | 6.25% | $1,847 | $364,975 | |
| Refinance to 15-yr | 5.875% | $2,511 | $152,044 |
Illustrative rates. Totals assume each loan runs its full term with no extra payments, and exclude closing costs.
The 15-year option costs about $413 more per month than your current loan, but cuts total interest by roughly $300,000. If that payment is too tight, a middle path works too: refinance into a 30-year for flexibility, then pay extra principal whenever you can.
When Refinancing Probably Isn't Worth It
You'll move before break-even
If you're likely to sell within your break-even window, you'll pay closing costs without recovering them.
You're far into your loan
Late in a mortgage, most of each payment already goes to principal. Restarting the clock can cost more interest overall.
Your credit has dropped
A lower score can mean a higher rate offer that wipes out the savings. Improving your score first may get you a better deal.
You have little equity
With under 20% equity on a conventional loan, you may pay PMI on the new mortgage, which eats into your savings.
8 Tips to Get the Best Refinance Deal
Get at least three Loan Estimates
Rates and fees vary meaningfully between lenders for the same borrower. Comparing standardized Loan Estimates side by side is the fastest way to save.
Shop within a short window
Credit scoring models generally treat multiple mortgage inquiries in a short period (typically 14–45 days) as one, so rate-shopping won't stack up hits to your score.
Start with your current lender
Your existing servicer may waive or reduce some fees to keep your business — then use that offer as leverage with other lenders.
Boost your credit score first
Paying down credit card balances before you apply can push you into a better pricing tier.
Run the numbers on points
Paying points lowers your rate but raises upfront costs. Points only pay off if you keep the loan well past the points' own break-even.
Ask for a title reissue rate
If you bought or refinanced recently, many title insurers offer a discounted reissue rate. You often have to ask for it.
Weigh no-closing-cost offers carefully
They usually mean a higher rate (often about 0.25%–0.50% more) or a bigger balance. Smart if you'll move or refinance again soon; costly if you stay long-term.
Lock your rate when the numbers work
Rates change daily. Once your break-even fits your plans, lock rather than gambling on a further drop.
Mortgage Refinance FAQ
How much does my rate need to drop to make refinancing worth it?
How much does it cost to refinance a mortgage?
What is a refinance break-even point?
Does refinancing restart my loan?
Is a no-closing-cost refinance really free?
Will refinancing hurt my credit score?
The Bottom Line
A lower rate is only half the story. The right refinance is the one where your break-even comes well before you plan to move and your lifetime interest goes down, not just your monthly payment. Plug in a real Loan Estimate above, compare a couple of terms, and you'll know within minutes whether refinancing is a smart move for you.
Disclaimer: This calculator and article are for educational purposes only and are not financial advice or a loan offer. Rate figures reflect publicly reported quotes in early October 2026 and change daily; examples use illustrative rates. Actual rates, fees, and eligibility depend on your credit, equity, loan type, and location. Consult a licensed mortgage professional before refinancing.
