Mortgage Refinance Calculator
Compare your current mortgage with a new rate. See the monthly savings, the closing-cost break-even point, and the lifetime interest impact before you commit.
About this tool
A mortgage refinance calculator that focuses on the only number that matters: when does the new loan pay for itself? Enter your current balance, your current rate, and the new offer. The calculator shows the break-even month, the monthly delta, and the lifetime interest comparison.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter current mortgage
Outstanding balance, current rate, remaining term — straight off your most recent statement.
- 2
Enter the new offer
New rate, new term, and estimated closing costs (typically 2–5% of loan amount).
- 3
Read the break-even
The calculator shows how many months of new EMI savings it takes to recover closing costs.
- 4
Check lifetime numbers
Verify total interest paid drops materially — not just monthly EMI.
- 5
Decide & document
Export the comparison and bring it to your loan officer as a sanity check.
The honest refinance test
Loan officers will pitch refinancing on monthly EMI savings. That number is easy to make look big — just extend the term. The honest refinance test compares three things: monthly payment, lifetime interest, and break-even month. A refinance that wins on all three is a yes. One that only wins on monthly payment is often a no.
Closing costs to verify
- Lender origination fee (often negotiable, sometimes waived for relationship customers).
- Title insurance & escrow (shop these — they vary 30–50% between providers).
- Appraisal fee ($400–$800 typical).
- Recording, taxes, prepaid interest, escrow setup.
- Discount points — only worth it if you stay long enough to amortize the upfront cost.
Frequently asked questions
When is refinancing worth it?+
Three things have to be true: the new rate is meaningfully lower (typically 0.75% or more), you plan to stay in the home past the break-even month, and closing costs are competitive (2–4% of loan amount). If any of those fails, refinancing usually loses to staying put.
How is the break-even month calculated?+
Break-even = closing costs ÷ monthly EMI savings. If refinancing costs $8,000 and saves you $300/month, you break even at month 27. After that point, the refinance is pure savings. The calculator factors this in automatically and shows the exact month.
Does extending the term during refinance cost more?+
Yes, even with a lower rate. Resetting a 22-year remaining mortgage back to a fresh 30-year term means you pay interest for 8 extra years. The honest comparison is total lifetime interest, not monthly EMI. The calculator highlights both — many "savings" come with hidden term resets.
What is a "no-cost" refinance?+
There is no such thing as a truly free refinance — the lender either rolls closing costs into the loan balance or hikes the rate slightly. "No-cost" usually means "no out-of-pocket cost," not zero cost. Compare lifetime interest under both versions; sometimes paying closing costs upfront wins by ~15–25% over the loan life.
Should I refinance or just make extra principal payments?+
Different goals. Refinancing reduces the rate going forward. Extra payments accelerate payoff regardless of rate. If the new rate is 0.75%+ lower, refinance first, then layer prepayments on the new loan — you get the best of both. Use this calculator for refinance and our Mortgage Prepayment Calculator for prepayment.
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More views of the same calculator
Open main calculator →Same underlying engine, written for different use cases. Pick the angle that matches your situation.