Refinance calculator
Enter your current loan and the new one. See the payment, the break-even and the interest.
What to compare
A refinance replaces your loan with a new one. Three numbers decide if it is worth it: the monthly payment, the closing costs and how long you will keep the loan.
Example: a $300,000 balance at 7% with 29 years left costs $2,016.39 a month for principal and interest. Refinancing to a 30-year loan at 6% costs $1,798.65, which is $217.74 less each month. With $6,000 in closing costs, the break-even is 28 months ($6,000 / $217.74). If you move or sell before then, you lose money on the refinance.
A shorter term changes the picture
The same loan refinanced to 15 years at 5.5% has a payment of $2,451.25, which is $434.86 higher than today, but it saves about $260,479 in interest overall.
| Rate | Monthly principal and interest |
|---|---|
| 5% | $1,610.46 |
| 5.5% | $1,703.37 |
| 6% | $1,798.65 |
| 6.5% | $1,896.20 |
| 7% | $1,995.91 |
| 7.5% | $2,097.64 |
Costs and caveats
- Closing costs vary. If you roll them into the loan, you pay interest on them.
- Resetting to a 30-year term can raise total interest even when the payment falls.
- This calculator covers principal and interest. Taxes, insurance and mortgage insurance are separate.
- Rates change daily. Use a quote from a lender for the real numbers.
Questions people ask
How do I know if refinancing is worth it?
Divide the closing costs by the monthly savings to get the break-even in months. If you will keep the loan longer than that, it can be worth it.
How much lower should the rate be?
There is no fixed number. The savings depend on the balance and the costs. Run the numbers for your loan.
Should I roll closing costs into the loan?
It saves cash now, but you pay interest on the costs. The calculator shows both ways.
Does the calculator include taxes and insurance?
No. It covers principal and interest only.