Last updated: April 2026
A mortgage refinance calculator helps you decide whether refinancing your home loan is actually worth it. Enter your current loan balance, rate, and remaining term, then compare a new rate and term — this tool instantly shows your new monthly payment, how much you'll save each month, the exact break-even point where closing costs are recouped, and your total lifetime savings. Unlike basic refinance calculators that just spit out a monthly number, this one gives you a clear YES/NO/MAYBE verdict, a side-by-side comparison table, a savings curve you can visualize, and supports cash-out refinance scenarios. Whether rates have dropped, you want to shorten your term, or you need cash for a home improvement, this calculator answers the one question that matters: should you refinance?
Input your current mortgage balance, interest rate, and years remaining on the loan. The calculator automatically derives your current monthly principal and interest payment so you don't have to look it up.
Input the new interest rate and choose a new loan term (10, 15, 20, 25, or 30 years). Use quotes from multiple lenders to compare options — each quote takes just seconds to model.
Pick your state from the dropdown. Closing costs are auto-filled based on your state's average — typically 1.5% to 3.1% of the loan amount. You can override the estimate with a custom number from your loan estimate.
Decide whether you'll pay closing costs out of pocket (standard) or roll them into the new loan balance. The calculator updates the new monthly payment and lifetime savings in real time.
If you're doing a cash-out refinance, enter the amount of equity you're pulling out. The calculator adds it to your new loan balance and warns you about the added interest cost.
Check the break-even point (the month when refinancing starts saving you money), the monthly savings, and the lifetime savings. Use the Worth It / Marginal / Not Worth It verdict to guide your decision.
A refinance calculator helps you decide whether refinancing your mortgage actually saves money after closing costs. Our calculator shows break-even point, monthly savings, total interest saved, and a clear Worth It / Not Worth It verdict so you can make a confident refinance decision.
Refinancing is generally worth it if you can drop your rate by at least 0.75%, plan to stay in the home past the break-even point (when monthly savings equal closing costs), and won't significantly extend your loan term. This calculator computes all three factors and gives you a clear Worth It / Marginal / Not Worth It verdict based on your exact numbers.
The break-even point is your total closing costs divided by your monthly savings. For example, if closing costs are $6,000 and refinancing saves you $200 per month, your break-even point is 30 months ($6,000 ÷ $200). If you plan to stay in the home longer than that, refinancing saves money. If you'll move sooner, you'll lose money on the refi.
The traditional rule of thumb is a rate drop of at least 0.75% to 1%, but it depends on your closing costs and how long you'll stay in the home. With low closing costs, even a 0.5% drop can pay off. With high closing costs, you may need a 1% drop or more. This calculator uses your exact closing costs to give you a precise answer instead of relying on rules of thumb.
Refinance closing costs typically range from 2% to 5% of the loan amount and include the loan origination fee, appraisal fee, title insurance, recording fees, credit report fee, and various lender fees. A $300,000 refinance often has closing costs between $6,000 and $9,000. Our calculator auto-fills state-average closing costs and lets you override with your exact loan estimate.
Rolling closing costs into the loan means no cash out of pocket, but you pay interest on those costs for the entire loan term. On a 30-year loan, $6,000 in rolled-in closing costs can cost an extra $6,000–$8,000 in interest. Paying closing costs upfront is usually cheaper if you have the cash. Toggle the 'Roll closing costs into loan' option in the calculator to compare both scenarios.
A cash-out refinance replaces your existing mortgage with a new, larger loan. You receive the difference in cash — typically used for home improvements, debt consolidation, or major expenses. You're trading equity for cash at your new mortgage rate, which is usually lower than credit card or personal loan rates but higher than your old mortgage rate. Enter the cash-out amount in this calculator to see how it impacts your payment and total interest.
Yes — a refinance replaces your current loan with a brand new one. If you refinance into a 30-year loan with 25 years left on your current loan, you've added 5 years of payments. This lowers your monthly payment but can increase total interest. Use this calculator to compare terms — you can refinance into a 15-year loan to pay off faster, or a 30-year loan for lower payments.
Monthly savings depend on your rate drop, the loan balance, and the new loan term. A 1% rate drop on a $300,000 balance typically saves $150–$200 per month on a 30-year loan. Extending the term (say from 20 to 30 years) amplifies the savings further but increases total interest paid. This calculator shows your exact monthly savings and breaks down the trade-off.