Mortgage Refinance Calculator

Summary

This mortgage refinance calculator compares your existing loan against a new refinanced loan to show exactly how much you can save. Enter your current balance, interest rate, remaining term, and the proposed new rate and term to get a detailed side-by-side payment comparison. The calculator factors in closing costs to tell you precisely when refinancing pays for itself.

How it works

1. Enter your current loan balance, interest rate, and remaining term in months or years.
2. Input the new interest rate and term you are considering for the refinance.
3. Add your estimated closing costs (typically 2–5% of the loan balance).
4. The calculator computes both monthly payments using the standard amortization formula.
5. Review monthly savings, break-even period, and total interest saved over the full term.

Use cases

• Deciding whether to refinance when rates have dropped since your original mortgage.
• Comparing a shorter loan term against a lower rate to see the total cost difference.
• Estimating how many months it takes to recoup closing costs from monthly savings.
• Evaluating a cash-out refinance where the balance increases.
• Running multiple scenarios to find the optimal new rate and term combination.
• Planning how long you need to stay in the home for refinancing to make financial sense.

Frequently Asked Questions