Compare your current mortgage to a new refinance loan. See monthly savings, break-even timeline, interest savings, and a loan balance comparison.
Live calculation
Break-even analysis
Amortization chart
Shareable link
Current Loan
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yrs
New Refinance Loan
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yrs
$
Cash-out eligibility depends on your home value, equity, loan program, credit, and lender. This calculator does not check LTV or eligibility.
$
Assumes you pay closing costs at closing. If you roll them into the loan, also enter the same amount as Cash-Out.
yrs
Before you sell or refinance again. This decides whether the refinance pays off.
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1% Rate Drop
On a $300,000 balance, a 1% lower rate cuts principal and interest by roughly $140 to $200 a month, depending on your rate and remaining term.
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Two Break-Evens
Payment break-even only measures when monthly savings cover closing costs. True break-even also counts your remaining loan balance, so it can come earlier or later.
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Cash-Out Wisely
Cash-out raises your balance and usually your payment. Compare its cost with other ways to borrow.
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Shop Rates
Get quotes from at least three lenders, ideally within 14 days. On most loans, even 0.25% less saves thousands over the full term.
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Ready to analyze
Enter your current loan details and new refinance terms on the left, then click Calculate Refinance Savings to see your complete savings analysis with break-even timeline.
Your Refinance Analysis
Example using the default values. Change any field to see your own numbers.
Monthly Payment Savings
$0
vs. your current payment
Current Payment
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P&I only
New Payment
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P&I only
Refinance verdict
Net After Your Stay
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If you sell or refinance then
Total Cost Difference
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Full loan, after closing costs
Payment Break-Even
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Monthly savings cover closing costs
Total Interest Difference
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New loan vs current loan
True Break-Even
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Also counts the balance you still owe
New Loan Amount
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Balance + cash-out
True Break-Even vs Your Stay
Upfront cost recovery-
Loan Balance Comparison
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Disclaimer: This calculator provides estimates for educational purposes only. Results are based on standard amortization math, compare principal and interest only (taxes and insurance are not included), and do not constitute a loan offer, financial advice, or guarantee of any rates. Totals add up future payments without adjusting for inflation or the time value of money. Actual refinance terms depend on credit score, property value, income, and individual lender requirements. Consult a licensed mortgage professional before making any decisions.
The mortgage refinance calculator helps you answer the most important question before refinancing: does it actually save money? Many homeowners focus only on getting a lower rate, but the true benefit of refinancing depends on your loan balance, closing costs, how long you plan to stay, and whether the monthly savings outweigh the upfront cost. This free tool performs a complete amortization comparison between your current loan and the proposed refinance, showing your monthly savings, break-even point, where you stand after the years you plan to stay, net interest savings, and a visual balance chart so you can make a fully informed decision.
2% to 5%
Typical refinance closing costs as a share of the loan; varies by lender and location
0.5% to 1%
Rate drop often cited as worth a closer look; your costs and stay decide
14 days
Safer rate shopping window, since some lender score versions use it
780+
Where the best conventional pricing usually starts; exact pricing depends on lender and loan
What Is a Mortgage Refinance Calculator?
A mortgage refinance calculator compares two loans side by side, your existing mortgage and the proposed new refinance loan, and tells you whether switching makes financial sense. It factors in the rate change, new loan term, cash-out amount, closing costs, and how long you plan to stay to show you the real net benefit (or cost) of refinancing.
Unlike a simple payment calculator, a refinance calculator works through the full amortization of both loans and accounts for the break-even point: the number of months it takes for cumulative monthly savings to recover the upfront cost of refinancing.
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Rate & Term Refinance
The most common type. You refinance to get a lower interest rate, a shorter loan term, or both. No cash is taken out. The goal is reducing monthly payment or total interest paid.
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Cash-Out Refinance
You refinance for more than you owe and receive the difference as cash. Often used for home improvements, debt consolidation, or major expenses. Increases your loan balance and usually your payment.
How we calculate: The calculator computes your current remaining payment using standard amortization math, then does the same for your new loan (balance plus cash-out, at the new rate and term). Payment break-even is your closing costs divided by the monthly savings. True break-even is the first month the refinance leaves you ahead once the remaining loan balance is counted too. For the years you plan to stay, it adds up the payments you would make on each loan, the balance you would still owe, your closing costs, and any cash you take out, so you can see whether you come out ahead. The lifetime figure does the same over the full length of both loans.
When Does Refinancing Make Sense?
Use this table as a guide, but always run your specific numbers through the calculator above:
Scenario
Likely Worth It?
Key Factor
Rate drops 1%+ on $300k+ loan
Often worth evaluating
Monthly savings can be large
Rate drops 0.5%, staying 5+ years
Depends on costs and stay
More time to pass break-even
Rate drops 0.25%, high closing costs
Needs careful analysis
Break-even may be too long
Moving in under 2 years
May not recover costs
Little time to pass break-even
Switching 30yr → 15yr, same rate
Depends on budget and goals
Higher payment, lower interest
Cash-out for high-interest debt payoff
Depends on cost and purpose
Compare effective interest rates
How to Use This Refinance Calculator
1
Enter Your Current Loan Details
Input your remaining loan balance, current interest rate, and remaining term in years. Find these on your most recent mortgage statement or loan servicer portal.
2
Enter the New Refinance Terms
Input the rate and term you've been quoted. To get accurate quotes, check with at least two or three lenders. Use the new loan term, not just the rate drop: choosing a longer term reduces the payment but can increase total interest.
3
Add Cash-Out if Applicable
If you're doing a cash-out refinance, enter the amount you want to receive. This increases your loan balance and usually your monthly payment, but gives you access to your equity.
4
Enter Closing Costs
Closing costs typically run 2% to 5% of the loan. Get an estimate from your lender's Loan Estimate document. Accurate closing costs are essential for a correct break-even calculation.
5
Add How Long You Plan to Stay, Then Review
Enter how many years you expect to keep the loan before you sell or refinance again. If your break-even comes well before then, refinancing is likely worth it. The net result for your stay and the lifetime figure show the full financial impact.
Frequently Asked Questions About Mortgage Refinancing
Is refinancing worth it right now?
Refinancing can be worth it if current mortgage rates are meaningfully lower than your existing rate and you plan to stay in the home past the break-even point. Enter how long you plan to stay and the calculator shows whether you come out ahead by then, counting closing costs and the balance you would still owe.
How much does it typically cost to refinance a mortgage?
Most refinance closing costs range from 2% to 5% of the loan amount. On a $300,000 loan that means $6,000 to $15,000 upfront. These costs directly affect your break-even point, which is why entering accurate closing costs in the calculator matters. Some lenders offer no-closing-cost refinances, where the costs are built into a higher rate instead.
What is a break-even point in mortgage refinancing?
This calculator shows two. Payment break-even is when your monthly payment savings recover the closing costs: if you save $200 a month and pay $4,000 in closing costs, that is 20 months. True break-even is when the refinance leaves you financially ahead once your remaining loan balance is also counted. It can come later than the payment break-even, for example when the new loan has a longer term, or earlier when the new loan pays down faster.
Should I refinance to a shorter loan term?
Refinancing from a 30-year to a 15-year mortgage usually increases your monthly payment but significantly reduces total interest paid. This makes sense if you can comfortably handle the higher payment and want to build equity faster. Use this calculator to compare the exact numbers: enter the new term and rate to see the full cost comparison.
Can I take cash out when refinancing?
Yes. A cash-out refinance lets you borrow against your home equity and receive funds at closing. The cash-out amount is added to your loan balance, which usually increases your monthly payment. It can make sense for home improvements, paying off high-interest debt, or major expenses, but it increases your total mortgage debt and should be evaluated carefully.
What credit score do I need to refinance?
There is no single minimum. Fannie Mae removed its fixed 620 minimum for loans run through its automated underwriting in November 2025, but many lenders still set their own minimums, often around 620 for conventional loans, and FHA refinances can allow lower scores. Pricing generally improves as your score rises, with the best conventional pricing usually going to scores of 780 or higher. A higher credit score usually means a lower rate, which directly affects your monthly savings and break-even timeline.
Does refinancing hurt my credit score?
You may see a small temporary dip due to the hard credit inquiry and new loan account. Most borrowers recover within a few months with consistent on-time payments. Credit scoring models generally count several mortgage inquiries within a short window as one. The window depends on the score version: newer FICO scores use 45 days, while some older versions still used by lenders use 14 days, so finishing your rate shopping within 14 days is the safer approach.
How soon can I refinance again?
There is no legal limit, but loan programs and lenders set waiting periods, and they vary. As a general guide, many conventional rate-and-term refinances have no waiting period, FHA Streamline and VA IRRRL refinances typically require at least 210 days and six on-time payments, and a conventional cash-out refinance typically requires your current loan to be at least 12 months old. Your lender can confirm what applies to you. Refinancing again only makes sense when the new savings clearly exceed the new closing costs, so run the numbers each time.
About the Creator
Sanjeev Kumar is the founder of OurNetHelps.com, a mortgage technology platform that builds borrower readiness tools for US mortgage brokers, including MDE Pro, a borrower assessment tool brokers use before application. He has over a decade of experience building WordPress-native tools and automation systems.
✅ Personally developed, tested, and maintained by me.
