Mortgage Refinance Calculator
See your new monthly payment, monthly savings, and how many months it takes to break even on closing costs when you refinance your mortgage. Free and accurate.
Calculator by Toolsloft ↗- New payment
- $1,419.47
- Monthly savings
- $347.48
- Break-even (months)
- 15
This calculator compares your current mortgage payment to a refinanced one and shows the monthly savings plus how long it takes to recover the closing costs. Use it to judge whether a lower rate or new term justifies the upfront cost of refinancing.
How this is calculated
It computes both payments with the standard amortizing formula, Payment = P*r*(1+r)^n / ((1+r)^n - 1), on the current balance, then divides closing costs by the monthly payment savings and rounds up to give the break-even month.
How to use
- Enter your current loan balance, rate, and the months remaining.
- Enter the new rate, new term in months, and the closing costs.
- Read your new payment, monthly savings, and break-even point.
Examples
- $250k 7% → 5.5%:
save $347.48/mo, break even in 15 mo - New term:
300 mo remaining refinanced to 360 mo
FAQ
- How is the break-even point calculated?
- Break-even months = closing costs ÷ monthly savings, rounded up. It is the number of months you must keep the new loan before the savings outweigh the refinance cost.
- Why does my monthly payment drop but the loan still cost more?
- Extending the term (e.g. 300 months to 360) lowers each payment but adds more payments overall, so total interest can rise even when the monthly amount falls.
- What if the new payment is not lower?
- If the new loan does not reduce your monthly payment, refinancing offers no monthly savings and the calculator will tell you so.