Free mortgage refinance calculator

Calculate your refinance savings and break-even point

Compare your current mortgage with a proposed refinance. See the monthly payment change, closing-cost break-even, five-year cost, loan balance, and long-term interest impact.

By refinancing your existing loan, your total finance charges may be higher over the life of the loan.

Your current mortgage

Use the unpaid principal balance and note rate from your latest statement. Compare principal and interest, not escrow.

Current loan balance$Current interest rateUse the note rate, not APR.%Years remainingyearsAdditional monthsmonthsCurrent mortgage insuranceEnter 0 if none. Taxes and homeowners insurance are excluded because refinancing usually does not change them.$/ mo

Proposed refinance

The starting figures are examples, not current rates or a loan quote. Replace them with a lender's proposed terms.

New interest rate%New loan termRestarting the term may lower the payment without lowering total cost.Total refinance closing costsUse total loan costs and other refinance charges from the Loan Estimate; exclude prepaid taxes and insurance when they are not a true new cost.$Cash out receivedCash out increases the new loan balance and is not counted as savings.$New mortgage insuranceEnter 0 if none.$/ moCompare costs overFive years matches the Loan Estimate comparison concept.years

Add closing costs to the new loan balanceFinancing costs reduces cash due at closing, but increases the payment and interest. The calculator still counts the full closing cost when comparing savings.

Estimated monthly loan-payment change

$287

less per month

Principal, interest, and entered mortgage insurance only. Property taxes, homeowners insurance, and HOA dues are not treated as refinance savings.

Simple fee break-even1 yr 9 mo

Net cost difference after 5 years$5,965 saved

The proposed term is longer than the time left on your current loan. Part of the lower payment may come from extending repayment—not only from the lower rate.

Current mortgage and proposed refinance comparison
Comparison	Current	Proposed
Loan balance	$300,000	$306,000
Interest rate	6.750%	5.750%
Remaining / new term	25 years	30 years
Monthly principal & interest	$2,072.73	$1,785.73
Monthly mortgage insurance	$0.00	$0.00
Total monthly loan payment	$2,072.73	$1,785.73
Balance after 5 years	$272,598	$283,852
Interest + mortgage insurance through 5 years	$96,962	$84,996

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Keep paying the same amount

Turn payment savings into extra principal

If you refinance and voluntarily keep paying your current loan-payment amount, about $287.00 could go toward extra principal each month.

Estimated payoff time21 yr 6 mo

Lifetime interest, MI, and fee difference vs. staying$88,942 saved

How the savings are calculated

Both loans use a fixed-rate amortization schedule. Monthly savings equal the current principal-and-interest payment plus entered mortgage insurance, minus the proposed equivalents.

The simple break-even divides total closing costs by positive monthly savings. The comparison-period result is stricter: it compares interest and entered mortgage insurance through the selected period, then includes the full refinance closing cost.

Financing closing costs increases the proposed principal and interest. Cash out also increases the proposed balance, but the cash received is not called savings. Taxes, homeowners insurance, and HOA dues are excluded because they generally are not controlled by the new lender.

Methodology reviewed August 2026.

Frequently asked questions

Does a lower interest rate always mean refinancing saves money?

No. Closing costs, a larger loan balance, mortgage insurance, and restarting a longer term can outweigh the rate reduction. Compare both the break-even period and borrowing cost over the time you expect to keep the loan.

What closing costs should I enter?

Use the refinance charges shown on a Loan Estimate, including lender and required third-party loan costs. Prepaid taxes, prepaid insurance, and initial escrow deposits may replenish accounts or cover future bills, so ask a mortgage professional which amounts are true incremental refinance costs.

Why compare five-year borrowing cost?

The Consumer Financial Protection Bureau uses a five-year interest-and-fee comparison on the Loan Estimate. Your own horizon may be shorter or longer, so this calculator lets you change it.

Is this a loan quote or approval?

No. This is an educational estimate. Actual rates, APR, mortgage insurance, costs, eligibility, and loan terms require a lender review and official disclosures.

What is a refinance break-even point?

It is the number of months required for the accumulated monthly payment reduction to equal the closing costs you enter. If you expect to sell or refinance again before that point, the costs have not yet been recovered. The break-even calculation here compares payments only and does not account for the interest already paid on the existing loan.

Worked example

How the refinance comparison is built

The figures below are illustrative inputs chosen to explain the arithmetic. They are not current rates, and they do not indicate that refinancing would save money in any particular situation.

Describe the existing loan: a $300,000 balance at 6.75% with 25 years remaining. The calculator amortizes it forward from that point rather than from the original loan amount.
Describe the proposed loan: a new rate and a new term, plus any cash out and any new mortgage insurance. Restarting a 30-year term lowers the monthly payment but stretches repayment back out, which is why term is an input rather than a fixed assumption.
Enter the closing costs from a Loan Estimate. The break-even figure divides those costs by the monthly payment reduction and rounds up, giving the number of months before the reduction has covered the costs.
Set the comparison window to the number of years you expect to keep the loan. The calculator compares interest, mortgage insurance, and costs over that window instead of assuming both loans run to term.

A lower rate does not by itself make a refinance worthwhile. If you expect to sell or refinance again before the break-even point, the closing costs have not been recovered. Actual rates, APR, costs, eligibility, and terms require a lender review and official disclosures.

Important estimate disclosure

This calculator assumes fixed interest rates and monthly payments. It does not model adjustable rates, tax consequences, prepayment penalties, changes in mortgage insurance, missed payments, or every loan-program rule. Results are for educational and planning purposes only and are not financial advice, approval, a commitment to lend, or a guarantee of rates, savings, costs, or terms.

Sources: Consumer Financial Protection Bureau loan comparison guidance, CFPB break-even explanation, and Fannie Mae refinance calculator guidance.

Each calculator answers a different planning question. All of them are free, work in your browser, and give educational estimates rather than loan approvals or quotes.

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