Free Mortgage Refinance Calculator — Savings Check
Compare your current mortgage to a new rate. See monthly savings, break-even after closing costs, and interest saved. Free refinance calculator to plan.
Leave blank to auto-calculate from balance, rate, and remaining term. Estimated: $1,996.03/mo
For cash-out refinances, enter the additional amount borrowed beyond your current balance.
Refinancing looks worthwhile — your estimated net savings are positive and the break-even period is within a reasonable range.
$8,400.00 ÷ savings
| Current loan | New loan | |
|---|---|---|
| Loan balance | $280,000.00 | $280,000.00 |
| Interest rate | 7.5% | 6.25% |
| Monthly P&I | $1,996.03 | $1,724.01 |
| Loan term | 28 years remaining | 30 years |
| Total interest | $390,665.82 | $340,642.94 |
| Closing costs | — | $8,400.00 |
Model a new purchase payment with the Mortgage Calculator or explore the full payoff schedule with the Amortization Calculator.
Red line = closing costs (upfront). Green line = cumulative monthly savings. Where they cross is your break-even point.
Break-even at month 31 (2.6 years)
- Your rate can drop by at least 0.5 to 1 percentage point
- You plan to stay in the home past the break-even point
- You want to remove PMI once you have enough equity
- You need to switch from an adjustable rate to a fixed rate
- A cash-out refinance funds renovations or debt consolidation at a lower rate
- You may sell or move before recovering closing costs
- Closing costs are high relative to monthly savings
- Resetting to a new 30-year term adds total interest despite a lower rate
- Rates have not fallen enough to offset lender fees
- Your credit score or debt-to-income ratio limits favorable offers
Some lenders offer refinances with little or no upfront closing costs in exchange for a slightly higher interest rate. Those costs are effectively rolled into the loan rather than paid at closing. Compare the rate premium and total interest over your expected stay — a no-cost option can still make sense if you move before a traditional break-even.
How this calculator works
The calculator compares your current loan to a proposed refinance using standard amortization math. If you leave the current monthly payment blank, it is estimated from your remaining balance, current rate, and remaining term. The new monthly payment is calculated from the new loan amount (balance plus any cash-out), new rate, and new term.
Break-even is closing costs divided by monthly payment savings — the number of months until cumulative savings recover what you paid to refinance. Total interest saved compares the remaining interest on your current loan against total interest on the new loan. Net savings subtracts closing costs from that interest difference.
The verdict considers whether monthly savings are positive, how long break-even takes (over 84 months is flagged), and whether net savings are positive. These are planning estimates only — actual offers depend on your credit, property type, lender fees, and market rates.
How to use this calculator
- 01Enter your remaining loan balance, current rate, and years left on the loan.
- 02Leave the current payment blank to auto-calculate, or enter your actual P&I payment.
- 03Set the new rate, term, and closing costs — use presets or auto-estimate at 3% of balance.
- 04Add a cash-out amount if you are borrowing extra beyond your current balance.
- 05Review the verdict, result cards, comparison table, and break-even chart.
- 06Use the decision guide to weigh whether refinancing fits your timeline and goals.