Refinance Calculator
Last Updated: February 2026
Refinancing means replacing your current mortgage with a new loan — usually to secure a lower interest rate, reduce your monthly payment, shorten your term, or access home equity. But a lower rate does not automatically mean better savings.
This refinance calculator helps you compare your existing loan to a new scenario side-by-side. You can see the change in monthly payment, total interest difference, and your estimated break-even point based on closing costs — so you can make a smarter long-term decision.
What Does Refinancing Mean?
Refinancing replaces your current mortgage with a new one. The new loan pays off the old loan balance, and you start making payments on the new terms. Most refinance decisions come down to three questions:
- Does the monthly payment improve? (helps your budget)
- Does the total interest decrease? (reduces long-term cost)
- How long until you break even? (closing costs vs monthly savings)
Quick idea: A refinance is usually strongest when you plan to stay in the home long enough to reach break-even and keep the savings.
Simple Example Using Round Numbers
Let’s use a beginner-friendly example with round numbers so the pattern is easy to understand:
Current loan balance: $300,000
Current rate: 6.75%
Years remaining: 30
New rate: 5.75%
New term: 30 years
Estimated closing costs: $6,000
If the new loan lowers your payment by about $200/month, your break-even time is roughly: $6,000 ÷ $200 = 30 months (about 2.5 years).
This is a simplified break-even estimate. Your actual lender fees, rate, and escrow rules can change the outcome.
Want to estimate your full monthly mortgage payment first?
Use the Mortgage CalculatorThen come back here to compare refinance scenarios.
When a Refinance Is Most Useful
- When rates dropped and you can lower your payment or total interest.
- When you want a shorter term (example: 30 → 15 years) to reduce long-term interest.
- When you want stability (example: ARM → fixed rate).
- When you’re planning your stay and can reach break-even comfortably.
Tip: A refinance can look good on monthly payment but still cost more long-term if you reset to a longer term. Always compare total interest too.
Refinance Calculator (Interactive)
Enter your current loan details and a new refinance scenario. The tool estimates payment change, total interest difference, and break-even time based on closing costs.
Refinance Calculator (Compare Payments, Interest, and Break-Even)
Compare your current mortgage vs a new refinance scenario. See estimated monthly payment change, total interest difference, and your break-even time based on closing costs.
Current Loan
New Refinance Loan
Timeline (for payoff date)
Actions
Current Payment
$0
New Payment
$0
Monthly Difference
$0
Total Interest (Δ)
$0
Break-Even
—
Scenario Comparison
| Scenario | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| Current Loan | $0 | $0 | $0 |
| New Refinance | $0 | $0 | $0 |
For education only. Results are estimates. Confirm terms and fees with a licensed professional and your lender disclosures.
Not sure how much cash you should put down before you refinance or buy?
Use the Down Payment CalculatorDown payment size can change your rate offers, monthly payment, and long-term interest.
FAQs
What is refinancing in simple terms?
Refinancing replaces your current mortgage with a new loan. The goal is usually a better rate, a better payment, or better long-term cost.
How do I know if refinancing is worth it?
Compare the new payment and total interest, then check break-even. If you plan to stay longer than break-even, the refinance is more likely to be worth it.
What is the break-even point?
Break-even is the time it takes for monthly savings to “pay back” closing costs. A simple estimate is closing costs ÷ monthly savings.
Do refinance calculators include taxes and insurance?
Most refinance tools (including this one) estimate principal + interest only. Taxes, insurance, HOA, and escrow rules vary and should be added separately for budgeting.
Can I refinance and keep the same payoff date?
Yes—if you refinance into a shorter term or pay extra each month. Resetting to a new 30-year term often lowers payment but can increase total interest over time.
Should I refinance to “reset” amortization?
It depends. Resetting can lower your payment, but it can also extend your timeline and raise total interest. Compare both total interest and your break-even timeline before deciding.
Try Another Mortgage Tool
Mortgage Calculator | Amortization Calculator | Down Payment Calculator
Refinancing can be a powerful financial tool when used strategically. Always compare both your monthly payment and total lifetime interest — and consider how long you plan to stay in the home. Use this calculator to test different scenarios, then confirm the numbers with your lender before making a final decision.
Part of the Calculators Today Network.