What a refinance calculator does
It compares your current mortgage with a potential new loan to estimate payment changes, projected interest, and how long it may take to recover closing costs.
Real estate calculator
Refinance Calculator
Compare your current mortgage against a potential refinance in one calm, practical layout. Estimate monthly principal-and-interest savings, see how closing costs affect break-even timing, and check whether refinancing may still make sense over the years you expect to stay in the home.
Editor
Refinance assumptions
Compare your current mortgage with a potential refinance using one structured form. The payment estimate, break-even view, and stay-horizon comparison update live as you edit.
Inputs
Start with the current mortgage and proposed refinance terms, then add closing costs, your expected stay horizon, and optional housing-payment context.
Current mortgage
These inputs establish the loan you already have today.
Use years or months.
New refinance loan
This version focuses on a standard fixed-rate, rate-and-term refinance estimate.
A longer term may lower payment while increasing total interest.
This estimate does not include lender-specific pricing, points, credits, or underwriting rules.
Refinance costs
Closing costs can be paid out of pocket or rolled into the new loan.
Break-even uses the full closing-cost amount either way.
Planning horizon
How long you expect to stay can matter as much as the rate.
The stay-horizon comparison looks at principal and interest paid, the remaining balance, and applicable closing costs.
Optional housing cost context
These inputs do not affect refinance savings math here. They only show fuller monthly housing-payment context.
Real offers can also shift because of points, lender credits, appraisal requirements, escrow setup, and your credit profile.
Results
Estimated refinance comparison
Compare monthly principal-and-interest payments, break-even timing, interest tradeoffs, and the likely outcome over your planned stay in the home.
Estimated monthly P&I savings
$287.55
Current principal and interest is $2,288.63 per month versus $2,001.08 for the refinance estimate.
This refinance calculator is a planning estimate, not a lender quote, underwriting approval, APR disclosure, or guaranteed closing-cost breakdown.
Current monthly principal & interest
$2,288.63
Baseline payment on the current remaining mortgage.
New monthly principal & interest
$2,001.08
Based on the proposed 30 years refinance term.
Total refinance closing costs
$7,000.00
Assumed to be paid outside the new loan.
Break-even time
2 years 1 month
Rule of thumb based on closing costs divided by monthly P&I savings.
Current remaining interest
$416,516.47
Projected interest from today through the current remaining term.
Projected refinance interest
$395,389.64
Projected interest across the full refinance loan term.
Lifetime interest saved
$21,126.83
A lower payment does not always mean lower total borrowing cost.
New loan amount
$325,000.00
Matches the current balance because costs are paid out of pocket.
Break-even within 7 years
Likely yes
Planned stay horizon: about 84 months.
Net outcome over 7 years
+$14,107.24
Positive means the refinance estimate comes out ahead after comparing payments, remaining balance, and closing costs.
Current total housing payment
$2,863.63
Includes principal and interest plus taxes, insurance, and HOA.
Refinance total housing payment
$2,576.08
Keeps housing-cost context separate from the core refinance analysis.
Cumulative monthly savings versus closing costs
The dark line shows cumulative monthly principal-and-interest savings. The dashed line marks the closing-cost threshold used for the simple break-even view.
Cumulative monthly P&I savings
Closing cost threshold
$24.2K$12.1K$0
Now3 years 6 months7 years
Side-by-side refinance breakdown
The stay-horizon rows help surface cases where a lower payment still leads to a weaker overall outcome.
| Measure | Current loan | Refinance loan | Notes |
|---|---|---|---|
| Loan amount today | $325,000.00 | $325,000.00 | Closing costs are paid outside the new loan. |
| Interest rate | 7.25% | 6.25% | Fixed-rate estimate for both loans. |
| Loan term | 27 years | 30 years | Remaining term today versus the new refinance term. |
| Monthly principal & interest | $2,288.63 | $2,001.08 | +$287.55 |
| Total monthly housing payment | $2,863.63 | $2,576.08 | Adds the same taxes, insurance, and HOA for context only. |
| Remaining lifetime interest | $416,516.47 | $395,389.64 | +$21,126.83 |
| Balance after 7 years | $289,562.30 | $292,609.26 | Remaining principal after the planned stay horizon. |
| P&I paid over 7 years | $192,244.92 | $168,090.72 | +$24,154.20 |
| Closing costs | Not applicable | $7,000.00 | Added as an upfront refinance cost in the stay-horizon view. |
| Break-even time | Not applicable | 2 years 1 month | Rule of thumb: closing costs divided by monthly P&I savings. |
| Net outcome over 7 years | Current loan baseline | Estimated benefit | +$14,107.24 |
How it works
What this refinance calculator helps you understand
This mortgage refinance calculator estimates whether a potential rate-and-term refinance may reduce your monthly payment, recover its closing costs, and come out ahead over the time you expect to stay in the home.
How refinance savings are estimated
The calculator uses fixed-rate amortization math to estimate both loans, then compares payment size, projected interest, and the balance still owed over your planned stay horizon.
What break-even means
Break-even is the point where estimated monthly principal-and-interest savings recover the refinance closing costs. It is helpful, but it is not the whole decision.
Why closing costs matter
Refinance costs can delay or erase the benefit of a lower payment. Financing them raises the new loan balance and usually increases total interest.
Why a lower payment is not always cheaper
A fresh 30-year term can lower the monthly payment while increasing lifetime interest. That is why this calculator shows both payment changes and long-term interest tradeoffs.
Why planned stay matters
If you expect to move before you recover the refinance costs, the refinance may not make financial sense. Actual offers also depend on fees, credits, appraisal requirements, escrow setup, and credit profile.