Mortgage Refinance Calculator
Closing costs in this model are added to the new loan. A higher payment does not get a break-even period.
Published by the Mortgage Guide editorial team. Rate assumptions and content updated October 2026. This page is educational. It is not a loan offer, approval, or personalized financial advice.
How this calculator works
- The current payment amortizes today's balance over the years you have left.
- The new payment amortizes the balance plus closing costs at the new rate and term.
- Monthly savings are the old payment minus the new payment.
- Break-even months are closing costs divided by monthly savings, and only when savings are above zero.
A longer term can cut the payment and raise total interest
Restarting a 30-year clock can lower the required payment even when the rate does not fall much. The interest line shows whether that longer life costs more over the full term.
If the new payment is higher, the page says break-even is not shown. Dividing costs by zero or by a negative number would not tell you when the refinance pays for itself.
Sources
Common questions
Does this include cash-out?
No. The new loan is the current balance plus the closing costs you enter. A cash-out refinance would start from a larger balance.
Are the rates live?
No. Enter the rate on your statement and the rate on a loan estimate.
Related calculators
- Mortgage Payment Calculator
Estimate a US mortgage payment with principal, interest, taxes, insurance, HOA, and PMI. See the payoff date and amortization schedule.
- Compare Mortgage Scenarios
Compare two or three mortgage offers side by side on payment, loan amount, interest, total cost, and payoff date.
- Closing Cost Calculator
Add up editable estimates for origination, appraisal, title, recording, and other closing costs. A state name labels the estimate only.
Longer guides on these topics are linked from the guides library.