Mortgage Refinance Calculator
Your new payment if you refinance, what it saves each month, how long the closing costs take to earn back, and the interest over both loans.
Result…
How it's calculated
Payment = L × i ÷ (1 − (1 + i)^−n), i = yearly rate ÷ 12 New loan = balance + cash out (+ closing costs if added to the loan) Break-even months = closing costs ÷ (current payment − new payment) Interest = payment × n − loan
Compares the mortgage you have with a new one. It works out both payments, the monthly saving and how many months of saving it takes to cover the closing costs. It also totals the interest left on each loan, because a new loan that runs longer can save each month and still cost more overall.
Your numbers, step by step
About the Mortgage Refinance calculator
This mortgage refinance calculator compares the loan you have with a new one. Enter your current balance, rate and years left, then the new rate, new term and closing costs. It shows the new monthly payment, how much it saves each month, how many months of saving it takes to cover the closing costs, and the difference in total interest across both loans. You can pay the costs upfront or add them to the new loan, and add a cash-out amount if you plan to borrow more. A lower payment is not always a saving: a longer new term can cost more interest overall, and the calculator shows both figures side by side so you can see the trade-off.
How to use it
- Enter the “Current balance”, the “Current rate” and the “Years left on current loan”.
- Enter the “New rate” and “New term” from the offer you are considering.
- Enter the “Closing costs” and choose whether to pay them upfront or add them to the loan.
- Optionally enter a “Cash out” amount you plan to borrow on top.
- Read the new payment, the monthly saving, the break-even months and the lifetime interest saved.
Worked example
A 200,000 balance at 7% with 25 years left costs 1,413.56 a month. Refinancing to 5% over 25 years brings the payment to 1,169.18, a saving of 244.38 a month. With 3,000 of closing costs paid upfront, 3,000 ÷ 244.38 = 12.28, so the costs are earned back in 13 months. Over the life of the loans the new one saves 73,313.49 in interest.
Updated
Questions people ask
How do I calculate the break-even point on a refinance?
Divide the closing costs by the monthly saving. The answer is the number of months before the lower payment has paid for the refinance; the calculator rounds up to whole months.
Can a refinance lower my payment but cost more overall?
Yes. Stretching the loan over a longer new term lowers the payment but adds more months of interest. Check the lifetime interest saved: a negative figure means the new loan costs more in total.
Should closing costs be paid upfront or added to the loan?
Adding them avoids paying cash now, but you then pay interest on them for the whole term. Switch between the two options to see how the payment and interest change.
How does cash out change the result?
Cash out makes the new loan larger, so the new payment covers more debt than the old one. The monthly saving then compares different loan sizes, not just different rates.
What does this refinance calculator leave out?
It assumes fixed rates and leaves out tax effects, early-repayment charges on your current loan and changes to insurance. Fees and rules differ by country and lender, so confirm the figures with the lender or a mortgage adviser. Compare offers that include fees with the APR calculator.