Refinance Calculator
Answer the key refinance question quickly: How much can I save, and when do I break even? Compare your current mortgage versus a refinanced option with new rate, new term, and closing costs.
Methodology: deterministic formulas based on your inputs only. No account data, no external rates, and no personalized advice.
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Compare Scenarios
Save your current inputs and compare Current + up to 2 saved scenarios.
Note: Saved scenarios are stored locally in your browser.
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| Compare | Scenario | Saved | Actions |
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Compare
Select up to 2 saved scenarios to compare with Current.
Chart
Solid: current cumulative cost · Dashed: refi cumulative cost
Monthly schedule
| Month | Current Payment | Refi Payment | Monthly Difference | Cumulative Savings | Current Balance | Refi Balance |
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How it works
We amortize your current loan balance across your remaining term and compare it to a refinanced loan with your new rate and term. Closing costs can be treated as upfront cash or rolled into the new loan principal.
Break-even month is the first month when cumulative costs of refinancing are lower than staying with the current loan.
Important: This tool excludes taxes, escrow changes, and lender-specific fees/points.
Monthly savings versus lifetime cost
A lower monthly payment does not always mean a lower total cost. If the new loan term is longer, lifetime interest can still rise even when the payment drops.
Review both monthly difference and total interest impact before deciding. This prevents choosing a refinance that improves cash flow but increases long-term cost.
How to interpret break-even month
Break-even month is when cumulative refinance benefit offsets closing costs and setup costs in the model. If you plan to move or sell earlier than this point, refinancing may not be economically justified.
The closer your expected ownership horizon is to break-even, the more important it is to stress test assumptions with conservative scenarios.
Scenario testing before making a refinance decision
Test at least three cases: expected new rate, slightly higher new rate, and different holding periods. This shows how robust savings are if market conditions or your timeline changes.
Also compare upfront-cost and rolled-in-cost modes to understand whether preserving cash now is worth any added long-term borrowing cost.
Frequently asked questions
Can break-even happen even if lifetime savings are negative?
Yes, especially if you lower monthly payments by extending the loan term. You might recover costs early but still pay more total interest over time.
Should I always refinance when rate is lower?
Not always. Closing costs, new term length, and how long you keep the loan all matter.
Does this include tax effects?
No. This is a baseline comparison model for payment and cost timing.