Refinance Savings Calculator

Summary

Enter your current mortgage details, new rate, and closing costs to instantly see monthly savings, total interest savings, and how many months until you break even.

How it works

1. Enter your current loan balance, interest rate, and remaining term in months.
2. Enter the new interest rate and new term you are considering.
3. Enter estimated closing costs (typically 2–5% of the loan balance).
4. The calculator computes monthly payments for both loans using the standard amortization formula.
5. It subtracts the new payment from the current payment to get your monthly savings.
6. Break-even point = closing costs divided by monthly savings.

Use cases

• Decide whether a lower interest rate justifies refinancing costs.
• Compare a 30-year refinance vs. a 15-year refinance.
• Estimate how long you need to stay in your home to recoup closing costs.
• Evaluate cash-out refinance affordability.
• Plan ahead for an upcoming rate-lock expiry.
• Compare multiple lender offers side by side.
• Understand total interest paid over the new loan life.
• Assess impact of extending or shortening the remaining term.

Frequently Asked Questions