Refinance Calculator
Compare your current loan to a new one and find your break-even point.
When Does Refinancing Make Sense?
Refinancing replaces your existing loan with a new one at a different rate or term. The key metric is the break-even point — the number of months it takes for your monthly savings to offset the closing costs. If you plan to stay in your home longer than the break-even point, refinancing is typically worthwhile. Our Mortgage Calculator can help you understand the full cost of your current or new loan.
Even a 0.5% rate reduction can generate significant savings over the life of a 30-year loan. To see how each payment breaks down after refinancing, use our Amortization Calculator with your new loan details.
Remember to factor in all closing costs including origination fees, appraisal, title insurance, and prepaid items when evaluating whether refinancing makes financial sense.
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For a related calculation, use APR Calculator to calculate the true Annual Percentage Rate of a loan including fees and points. Alternatively, use Amortization Calculator to view the full month-by-month amortization schedule showing principal, interest, and balance.
For the underlying method, read Refinancing Your Mortgage: When It Makes Sense.