Refinance Calculator
Estimate your monthly savings, break-even point, and lifetime interest savings when refinancing a mortgage or loan.
Current loan & refinance terms
Monthly savings
$356
Break-even point: 16 months
Old payment
$1,961/mo
New payment
$1,605/mo
Lifetime savings
$28,554
Old total interest
$336,791
New total interest
$302,737
Frequently Asked Questions about the Refinance Calculator
What is the breakeven formula for refinancing?
Breakeven months = closing costs / monthly savings. If new closing costs are $4,000 and you save $200 per month, you break even in 20 months. Beyond that month, you are saving money.
Can you give a real example?
A $300,000 balance with 25 years left at 7% costs about $2,070 per month. Refinancing to 5.5% on a fresh 30-year loan drops the payment to roughly $1,703, saving about $367 monthly.
What inputs change the answer most?
The gap between old and new rate, closing costs, and how long you plan to stay. Stretching the term to 30 years again lowers the payment but can raise total interest, even if the rate is lower.
What is a common refinance pitfall?
Rolling closing costs into the new loan hides the true cost. You pay interest on those fees for 30 years. Also, restarting the term resets your amortization, so early payments are mostly interest again.
Does this calculator account for US tax effects?
No. Mortgage interest is deductible only if you itemize, which most Americans no longer do after the 2017 standard deduction nearly doubled. Treat the gross numbers as your real savings unless you itemize.