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Refinance Calculator

Compare your current mortgage against a refinance offer, including break-even.

Quick answer

Refinancing replaces your current mortgage with a new loan, usually for a lower rate or a different term. It pays off when your monthly savings recoup the closing costs before you'd sell or refinance again — the break-even point is closing costs divided by monthly savings, in months.

Current vs. new loan
$
%
yrs
%
yrs
$

Monthly savings

$313.93

New payment

$1,798.65

Break-even

1 yr 8 mo

Lifetime savings

$30,962

Resetting to a longer term can lower the payment yet raise lifetime interest — check both numbers.

When refinancing wins

The classic threshold is a rate drop of 0.75–1%+ with plans to stay past the break-even point (closing costs ÷ monthly savings). Staying 5+ years with a 1.25% drop on a $300k balance typically saves tens of thousands.

The term-reset trap

Refinancing 27 remaining years into a fresh 30-year loan lowers the payment partly by adding three years of interest. To compare honestly, either match the new term to your remaining years or compare lifetime totals — this calculator shows both.

Frequently asked questions

How does the Refinance Calculator work?
Refinancing replaces your current mortgage with a new loan, usually for a lower rate or a different term. It pays off when your monthly savings recoup the closing costs before you'd sell or refinance again — the break-even point is closing costs divided by monthly savings, in months.
Is the Refinance Calculator free to use?
Yes. The Refinance Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.

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