Comprehensive Guide
Learn more in our Loans & Mortgage Guide.
How it works
mortgage refinance calculator takes your inputs and produces new monthly payment, monthly savings, break-even months, total savings (5yr). Calculate break-even point and savings from refinancing your mortgage at a lower rate. You provide 6 inputs: Current Loan Balance (currency, in dollars) (default: 250000 dollars); Current Rate % (percent, in percent) (default: 7.5 percent); Current Monthly Payment (currency, in dollars) (default: 1748 dollars); New Rate % (percent, in percent) (default: 6.5 percent); Refinance Closing Costs (currency, in dollars) (default: 5000 dollars); New Term (years) (number) (default: 30). The calculator returns 4 outputs: New Monthly Payment (the primary result); Monthly Savings (a secondary output); Break-Even Months (a secondary output); Total Savings (5yr) (a secondary output). Loans and mortgages are amortized instruments where the split between interest and principal shifts every month. Understanding the total cost of borrowing — not just the monthly payment — is the difference between a sustainable debt load and one that erodes your net worth over time. This calculator reveals the full amortization picture. With the default values, new monthly payment is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Tips
- Start with the default values to see a baseline result, then change one input at a time to understand which factor matters most for your outcome.
- Replace every default with your actual number — estimates and rules of thumb produce estimates, not answers. Pull your real figures from pay stubs, statements, or account dashboards.
- Compare the total cost of borrowing, not just the monthly payment. A lower monthly payment often means paying thousands more in interest over the life of the loan.
Frequently asked questions
When to refinance?
When rate drops 0.75%+ and you plan to stay past break-even. Break-even = closing costs / monthly savings.
What does the mortgage refinance calculator calculate?
It takes current loan balance, current rate %, current monthly payment, new rate %, refinance closing costs, new term (years) as inputs and computes new monthly payment, monthly savings, break-even months, total savings (5yr). The primary output is new monthly payment. Calculate break-even point and savings from refinancing your mortgage at a lower rate.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.