Refinance Calculator
See if refinancing saves you money. Calculate your break-even point and monthly savings with closing costs.
Inputs
Refinance Analysis
New Payment
$1,836
Monthly Savings
$185
Break-Even
27 months
Cumulative Savings vs. Closing Costs
How to Use This Refinance Calculator
Our free refinance calculator helps you determine whether refinancing your mortgage will save you money. Enter your current loan details and the new loan terms to see your potential monthly savings, total interest savings, and the break-even point when refinancing pays for itself.
Refinancing replaces your existing mortgage with a new loan, ideally at a lower interest rate or better terms. This calculator compares your current mortgage with the proposed refinance to show you exactly how much you could save each month and over the life of the loan.
The break-even analysis is crucial — it tells you how many months it takes for your monthly savings to offset the closing costs. If you plan to stay in the home longer than the break-even period, refinancing makes financial sense. Use this tool to test different rate scenarios and find your optimal refinance strategy.
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Frequently Asked Questions about Mortgage Refinancing
When should I refinance my mortgage?
Refinance when interest rates drop at least 0.5-1% below your current rate, when you want to switch from ARM to fixed rate, when you need to remove PMI, or when you want to change your loan term. Calculate break-even to ensure you'll save enough to cover closing costs before refinancing.
How much can I save by refinancing?
Savings depend on your current rate, the new rate, remaining loan term, and closing costs. If you have 20 years left at 6% on a $200,000 loan, refinancing to 4% could save $60,000+ in interest. Use our calculator to compare your specific scenario.
What are the break-even costs of refinancing?
Break-even = closing costs ÷ monthly savings. If refinancing costs $4,000 and saves $200/month, break-even is 20 months. Only refinance if you plan to stay in the home longer than the break-even period to realize actual savings.
Can I refinance with bad credit?
Yes, but expect higher rates and fees. Most lenders require 620+ credit score for conventional refinance, though FHA and VA loans may have more lenient requirements. Improve your credit before applying to qualify for better rates and terms.
What is the average closing cost for refinancing?
Closing costs typically range from 2-5% of the loan amount. On a $300,000 refinance, expect $6,000-$15,000 in costs. Shop around and negotiate fees - some lenders offer no-cost refinances where you pay slightly higher rates.
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