Compare your current mortgage payment to a new rate and find the break-even point on closing costs.
How the refinance calculator works
Refinancing can lower your payment, but closing costs take time to recover. Enter your balance, current payment, a new rate and term, and the closing costs to see the monthly saving and break-even months.
If you’ll keep the loan past break-even, refinancing usually makes sense.
Getting your answer
- Enter your balance and current payment.
- Enter the new rate and term.
- Enter closing costs to see the break-even.
The formula
new payment from balance, new rate and term
break-even = closing costs ÷ monthly savings
Worked example
The calculator opens with a current balance of 250,000, closing costs of 4,000. On those figures the new monthly payment is $1,419.47. Underneath, New payment comes out at $1,419.47 and Monthly savings at $160.53. Change any field and every figure updates as you type.
FAQ
What is the break-even point?
How many months of savings it takes to recover the closing costs. Past that, you’re ahead.
Is a lower payment always better?
Not if it comes from a longer term — that can raise total interest even at a lower rate. Weigh both.
Should I refinance?
It depends on the rate drop, costs and how long you’ll stay. This is an estimate, not financial advice.