Refinance Calculator

Compare your current mortgage with refinancing options to see potential savings

Current Mortgage

Current Loan Amount ($)

Current Interest Rate (%)

Current Loan Term (years)

Remaining Years

New Mortgage Terms

New Interest Rate (%)

New Loan Term (years)

Closing Costs ($)

About This Calculator

The Refinance Calculator helps you compare your current mortgage with potential refinancing options. It calculates your monthly savings, total savings over the remaining loan term, and the break-even point to help you decide if refinancing makes financial sense.

How It Works

1
Enter your current mortgage details: loan amount, interest rate, and loan term.
2
Input how many years remain on your current mortgage.
3
Provide the new interest rate and loan term for the refinanced mortgage.
4
Enter estimated closing costs for the refinance.
5
The calculator compares both mortgages and shows your potential savings and break-even point.

Formula Explanation

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

This standard amortization formula calculates the monthly payment for both current and new mortgages, where P is principal, r is monthly interest rate, and n is number of payments.

Monthly Savings = Current Payment - New Payment

The difference between your current monthly payment and the new refinanced payment.

Total Savings = (Monthly Savings × Remaining Months) - Closing Costs

Total savings over the remaining loan term, accounting for refinancing closing costs.

Break-Even Point = Closing Costs / Monthly Savings

The number of months it takes for your monthly savings to cover the closing costs of refinancing.

Tips

Refinancing makes sense if you can lower your interest rate by at least 0.5-1%.
Consider the break-even point - if you plan to move before breaking even, refinancing may not be worth it.
Factor in all closing costs, including appraisal, title insurance, and lender fees.
Shorter loan terms save more interest but increase monthly payments.
Don't forget to account for any prepayment penalties on your current mortgage.

Common Uses

Interest Rate Reduction

Calculate savings when refinancing to a lower interest rate.

Loan Term Change

Compare keeping your current term vs. switching to a shorter or longer term.

Break-Even Analysis

Determine how long you need to stay in your home to make refinancing worthwhile.

Cash-Out Refinance

Evaluate the cost of taking cash out when refinancing.