Mortgage Refinance Calculator
See your monthly savings, break-even month, and true lifetime savings — closing costs and term changes included
Typically 2–6% of the balance
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Quick summary
Enter your current balance, rate, and remaining term, then the new rate and closing costs. The calculator shows your monthly savings, the break-even month (closing costs ÷ monthly savings), and — most importantly — lifetime savings including fees and any term extension. A refinance usually makes sense when you'll stay past the break-even point and the lifetime number is positive.
Reviewed by Simple Calculators TeamLast reviewed
For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
When is refinancing worth it?
The classic rule of thumb is a rate drop of 0.75–1%, but the real test is the break-even: if closing costs are $6,000 and you save $280/month, you break even in 22 months — worth it if you'll keep the loan longer than that. Always check lifetime savings too, since restarting a 30-year clock can erase monthly gains.
What does refinancing cost?
Typically 2–6% of the loan amount: origination fees, appraisal, title insurance, and recording fees. You can pay upfront, roll costs into the new balance, or take a slightly higher "no-cost" rate — each just moves the same cost around.
Why can a lower payment still cost more overall?
If you're 5 years into a 30-year loan and refinance into a fresh 30-year term, you're stretching the remaining balance over 5 extra years. The payment drops, but total interest can rise. Compare against a new term matching your remaining years to isolate the rate benefit.
Should I refinance into a shorter term?
Refinancing a 30-year into a 15-year usually raises the monthly payment but slashes lifetime interest — 15-year rates also run about 0.5% lower. This calculator handles that case: the break-even shows −1 (no payment savings) while lifetime savings shows the real gain.
Does refinancing hurt my credit?
A hard inquiry and a new account cause a small, temporary dip (usually under 10 points). Rate-shopping multiple lenders within a 14–45 day window counts as a single inquiry for scoring purposes.
Key terms
- Break-Even Point
- The month when accumulated payment savings equal what you paid in closing costs — the minimum time to keep the loan for the refi to pay off.
- No-Cost Refinance
- Closing costs traded for a higher rate rather than cash — you still pay, just through the rate.
- Rate-and-Term Refinance
- Changing the rate and/or term without taking cash out — the standard refinance this calculator models.
- Cash-Out Refinance
- Borrowing more than you owe and pocketing the difference — higher rates and different math than rate-and-term.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.