Refinance Calculator
See your monthly savings and break-even point when refinancing a mortgage or loan to a lower rate.
Last reviewed July 1, 2026
You break even once monthly savings repay your closing costs. Refinancing usually only pays off if you keep the loan past the break-even point.
Refinancing swaps your existing loan for a new one, ideally at a lower rate. But closing costs mean it only pays off if you keep the new loan long enough. This calculator shows your monthly saving and the break-even point — the month when those savings have repaid the cost of refinancing.
Enter your remaining balance, current and new rates, the new term, and the fees involved. If you plan to keep the loan past the break-even point, refinancing usually makes sense.
How the break-even point works
Divide your total refinancing costs by your monthly saving and you get the number of months to break even. Stay in the loan longer than that and you're ahead; sell or refinance again sooner and you may lose money on the deal.
Watch out for extending the term. Refinancing a loan you're 5 years into back to a fresh 30 years lowers the payment but can increase total interest — compare the full picture, not just the monthly number.
Frequently asked questions
▶Is it worth refinancing my mortgage?
Generally yes if the new rate is meaningfully lower and you'll keep the loan past the break-even point shown above. If you might move or refinance again soon, the closing costs may not pay off.
▶What are typical refinance costs?
Closing costs often run a few percent of the loan balance, covering appraisal, origination and legal fees. Enter your actual quoted figure for an accurate break-even estimate.
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Open calculator →Disclaimer: Refinance Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.