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.
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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