Cumulative savings after closing costs
Closing costs are rolled into the loan, so the saving starts immediately.
Current loan vs refinanced
Details
About the refinance calculator
Refinancing replaces your current mortgage with a new one — usually to grab a lower interest rate and shrink your monthly payment. But refinancing isn’t free: closing costs typically run 2–5% of the loan. The real question is whether the monthly savings outrun those costs before you sell or move.
This calculator compares your current payment with the new one, shows how much interest each loan costs, and pinpoints the break-even month — the point where your accumulated savings finally cover the closing costs. Refinance only if you’ll keep the home past that point.
A common rule of thumb is that a rate drop of about 0.5–1% is enough to be worth it, but the honest test is your break-even month. If you’ll stay in the home longer than the break-even, you come out ahead. Watch out for “resetting the clock”: refinancing a 27-year balance into a new 30-year loan lowers the payment but can increase total interest.
Frequently asked questions
Is it worth refinancing my mortgage?
It is worth it if your monthly savings recover the closing costs before you sell or move. Enter your current loan and the new rate to see the break-even month — if you plan to stay in the home past that point, refinancing saves you money overall.
What is the break-even point on a refinance?
The break-even point is how many months of lower payments it takes to recoup your closing costs. For example, $6,000 in costs and $250/month of savings breaks even in 24 months. After that, the savings are yours to keep.
Does a lower monthly payment always save money?
Not necessarily. Extending the loan term (say from 27 years remaining to a new 30-year loan) can lower the payment while raising the total interest you pay. This calculator shows total interest for both loans so you can see the full picture.
Should I roll closing costs into the loan?
Rolling costs in means no cash out of pocket, but you finance those costs and pay interest on them. This tool lets you toggle that option and recalculates the payment and break-even for each choice.