Refinance Calculator
Finance & MoneyMortgage refinance calculator with break-even analysis, lifetime interest comparison, matched-term and cash-out modes, and no-closing-cost modeling. Runs in your browser.. Free, private — all processing in your browser.
| Current loan | New loan | Matched term* | Delta (new vs current) | |
|---|---|---|---|---|
| Monthly P&I | $2,230.27 | $1,798.65 | $2,049.22 | $−432 |
| Rate | 7.000% | 6.000% | 6.000% | -1.000% |
| Term | 22 yr | 30 yr | 22 yr | 8 yr |
| Principal | $300,000 | $300,000 | $300,000 | 0 |
| Total interest (term) | $288,792 | $347,515 | $240,995 | $+58,723 |
| Total paid (term) | $588,792 | $647,515 | $540,995 | $+58,723 |
Estimates assume your rate is fixed and your payment is constant over the full term. Real closing costs depend on your lender's Loan Estimate (a CFPB-mandated disclosure lenders must send within 3 business days of your application). PMI, taxes, insurance, and HOA aren't modeled here — if you want the full PITI view, start with the mortgage calculator. This tool is a planning aid, not financial advice or a loan quote.
Most refinance calculators answer the easy question ("what's my new monthly payment?") and stop. This one answers the question that actually decides it: will you keep the loan long enough for the savings to beat the closing costs? Enter your current loan and the new offer and you get the monthly savings, the break-even point in months, and — set against how long you plan to stay — a plain-English verdict on whether it's worth doing.
It also handles the things that quietly change the math: cash-out refinances (with an LTV check), and the three ways closing costs get paid (out of pocket, rolled into the balance, or bought down with a higher "no-cost" rate). And it flags the trap almost every refi hides — resetting a paid-down loan to a fresh 30-year term can *increase* your lifetime interest even at a lower rate.
Worked examples
Classic rate drop — $300,000 at 7.0% refinanced to 6.0% over 30 years
Current balance: $300,000 Current rate: 7.0% Months remaining: 264 (22 years) New rate: 6.0% New term: 30 years Closing costs: $6,000 (paid at close) Stay horizon: 7 years
New monthly P&I: $1,798.65 Monthly savings: $431.62 Break-even: 13.9 months (~October next year) Lifetime interest delta: +$58,723 (refi costs MORE over full term) Verdict: break even in 14 months, worth doing — BUT you'd pay $58,723 more interest over the full new-loan term than your current loan. Matched-term (below) avoids the trap.
Same loan — the honest matched-term version
Current balance: $300,000 Current rate: 7.0% Months remaining: 264 New rate: 6.0% Matched term: 264 months (same as current) Closing costs: $6,000 (paid at close) Stay horizon: 7 years
New monthly P&I: $2,046.93 Monthly savings: $184.73 (vs current's $2,226.75) Lifetime interest delta: -$47,473 (refi saves ~$47K over matched term) Verdict: smaller monthly relief, bigger lifetime win. Same refinance, honest math.
Big balance, big rate drop — $500,000 at 7.5% to 5.75%
Current balance: $500,000 Current rate: 7.5% Months remaining: 300 (25 years) New rate: 5.75% New term: 30 years Closing costs: $10,000 (paid at close) Stay horizon: 10 years
New monthly P&I: $2,917.86 Monthly savings: $727.90 Break-even: 13.7 months Lifetime interest delta: -$83,500 (refi saves ~$83K even on fresh 30-year) Verdict: big rate drop on a big balance wins both the short and long game — this is the textbook refinance.
Cash-out refi — pulling $40,000 for a renovation
Current balance: $250,000 Current rate: 7.0% Months remaining: 240 New rate: 6.5% (cash-out typically 0.25% higher than rate-and-term) New term: 30 years Closing costs: $8,000 Cash out: $40,000 Home value: $450,000 Stay horizon: 10 years
New loan balance: $290,000 Post-refi LTV: 64.4% (safely under 80% cash-out cap) New monthly P&I: $1,832.82 (up $95 vs current) Break-even: n/a (monthly goes up, but you got $40K cash) Lifetime interest vs staying put: +$67,300 Verdict: costs $67K more over 30 years vs not refinancing — real question is whether $40K in cash today is worth $107K in interest + closing costs over the loan's life.
No-closing-cost refi — lender absorbs costs via rate bump
Current balance: $300,000 Current rate: 7.0% Months remaining: 264 Base new rate: 6.0% Rate bump: +0.375% (no-cost mode) Effective new rate: 6.375% New term: 30 years Closing costs: $0 upfront Stay horizon: 4 years
New monthly P&I: $1,872.15 Monthly savings: $354.60 (vs paid-cost version's $431.62) Break-even: n/a (nothing paid upfront) Lifetime interest delta: +$81,200 (refi costs more over full term) Verdict: over 4 years of stay, saves ~$17K in interest — no-cost mode wins for short horizons. Over 30 years, you pay $81K more in interest than just riding the current loan. Pick based on how long you'll actually keep the loan.
Small drop late in the loan — when refinancing doesn't work
Current balance: $120,000 Current rate: 6.5% Months remaining: 120 (10 years) New rate: 5.75% New term: 30 years Closing costs: $3,500 Stay horizon: 8 years
New monthly P&I: $700.23 Monthly savings: $662.33 (vs current's $1,362.56) Break-even: 5.3 months (looks great) Lifetime interest delta: +$47,800 (fresh 30-year adds $47K over full term) Verdict: huge monthly relief and fast break-even on paper, but you've extended a 10-year loan into a 30-year loan. Over your 8-year stay you net about $25K savings. Over the full new term, you pay $47K more interest. Classic term-reset trap.
Common use cases for the Refinance Calculator
Homeowners evaluating a specific offer
- →Sanity-check a Loan Estimate from one lender: Lender hands you a Loan Estimate with rate, term, and closing costs. Punch those numbers into the tool, set your stay horizon, and read the verdict. If it says 'worth doing,' the refi probably holds up. If it says 'skip,' ask your lender whether they can absorb more of the closing costs or shave a few basis points off the rate.
- →Compare two or three competing offers side by side: Open the tool in multiple tabs, enter each offer, and compare the verdict, break-even, and lifetime-interest delta across them. The lowest rate isn't always the best deal — a lender offering 6.0% with $8,000 in closing costs may lose to one offering 6.125% with $4,000 in costs once you account for break-even.
- →Stress-test the matched-term version of each offer: Almost every refinance pitch is built on a fresh 30-year term because the monthly drops the most there. The matched-term version tells you whether the refi still makes sense if you don't want to extend your payoff date. Often it does. Sometimes it reveals that the pitched savings are entirely a term-reset illusion.
- →Decide whether to pay closing costs upfront or roll them in: Same offer, three closing-cost styles. Paid at close gives you the cleanest lifetime number but requires cash today. Rolled in preserves cash but adds 30 years of interest on the costs. No-cost absorbs costs via a rate bump — almost always worse over long horizons but sometimes right for people moving in 4-5 years. Run all three modes with the same rate and term to see the honest tradeoff.
Homeowners comparing refi against alternatives
- →Compare refinancing against paying extra on the current loan: Instead of refinancing, some homeowners add $200-500/month in extra principal to the existing loan. That saves interest without closing costs. Use our [mortgage calculator](/tools/mortgage-calculator) to model the extra-payment option, then compare against what this tool shows for a refinance. Sometimes the extra-payment move wins, especially when closing costs are high or the rate drop is small.
- →Weigh a cash-out refi against a HELOC or personal loan: Need $40,000 for a renovation or debt consolidation. A cash-out refi pulls it from equity at mortgage rates (usually 6-8%). A HELOC runs closer to 8-10% but doesn't reset your loan term. A personal loan is faster to close but charges 10-15%. Run the cash-out refi math here, compare against HELOC rates from your bank, and pick based on which monthly and lifetime cost fits your situation.
- →Check if a no-cost refi beats a paid-cost refi over your stay: Run the same offer twice — once with closing costs paid at close, once with the no-cost / rate-bump option. If you're moving in 3-4 years, the no-cost version sometimes wins because you escape the principal's long tail of higher-rate interest. Beyond 5 years, paid-at-close usually wins. The tool makes this tradeoff explicit.
- →See if a mortgage recast makes more sense than refinancing: A recast applies a lump-sum principal payment to your existing loan and recalculates your monthly payment at a lower amount — same rate, same term, no closing costs. Not all lenders offer it, and it doesn't reduce interest much, but if you have cash on hand and rates haven't moved, recast beats refi. This tool helps you see what a refi would buy, so you can decide whether recast would be enough instead.
Near-term movers and special cases
- →Check if a refi makes sense when you're planning to sell in 1-3 years: Short stay horizons are where most refinances lose money. Set your stay horizon to 24 months, and the verdict strip will tell you directly whether the refi survives that window. If break-even is 36 months and you're leaving in 24, you'll lose the closing costs plus a bit more. The no-cost refi mode sometimes salvages short-horizon scenarios, but only sometimes.
- →Decide whether refinancing to drop PMI is worth it: If you bought with under 20% down and your home has appreciated, a refi can put you above 80% LTV and remove PMI. Model the savings: lower rate if rates have moved, plus whatever PMI you were paying. If the PMI alone was $200/month, a refi can easily justify its closing costs even without a rate drop. Use our mortgage calculator alongside to see what you're currently paying in PMI.
- →Model the tax-deductibility impact of refinancing cash-out: Cash-out proceeds used for home improvement may remain deductible under IRS rules; cash-out used to pay off credit cards or fund other expenses typically isn't deductible. This tool computes the cash-out math but doesn't weigh in on deductibility — run your own tax scenario or consult a CPA. If deductibility matters, factor the lost deduction into the effective rate you're paying.
- →Quick scenario on a phone for a real estate agent or loan officer: Agent at a listing, loan officer at a coffee meeting. Punch numbers into the tool, show the client the verdict strip and the three headline numbers. Ten seconds, no signup, no account creation, no screen-sharing concerns. The CSV export is clean enough to email if the client wants to dig in later.
Using the Refinance Calculator
- 1
Enter your current loan
Current balance (not the original loan amount — what you still owe today), your current interest rate, and months remaining on the loan. Your most recent mortgage statement has all three numbers in the first page or two. If you only know the original terms and the month you started paying, subtract paid months from the total to get months remaining.
- 2
Enter the new offer
The rate your lender quoted, the new term in years, and estimated closing costs. For the rate, use the note rate (not APR). For closing costs, the default 3% of balance is a sensible placeholder but a real Loan Estimate from a lender will give you a specific number. Closing costs typically run 2% to 5% of the loan amount depending on state, lender, and loan size.
- 3
Pick the closing-cost style
Paid at close is the default and the cleanest financial picture — you write a check at closing and the loan balance stays clean. Rolled into principal absorbs the costs into the loan so you don't pay upfront. Lender-paid (no-cost refi) raises the rate to cover the costs. Each produces a different lifetime-interest number, and the tool computes all three correctly so you can compare.
- 4
Set your stay horizon
How long you plan to keep the house, in years. This is the single most important input for whether the refinance makes sense. A 14-month break-even is great if you'll be there 7 years. It's a net loss if you're moving in 12 months. Be honest about this number — optimistic stay horizons lead to regretted refinances.
- 5
Toggle cash-out if you need equity
Cash-out mode adds fields for cash taken and home value. The tool computes the new loan amount as current balance + cash + rolled costs, then calculates post-refi LTV. If LTV exceeds 80%, you'll see a warning — most conventional lenders cap cash-out at 80% LTV, and rates climb above that threshold. Cash-out rates also typically run 0.25-0.75% higher than rate-and-term rates, something to ask your lender about before running numbers.
- 6
Read the verdict strip and the three headline numbers
The verdict strip at the top synthesizes everything into a sentence. Below that: new monthly payment, monthly delta versus current (green for savings, red for increase), break-even in months and calendar date, and the lifetime interest delta. If the lifetime delta is positive and the stay horizon is short, the refi probably isn't worth it regardless of how low the monthly drops.
- 7
Compare against the matched-term alternative
The matched-term column shows what the new loan would look like if you kept the same payoff date as your current loan. Almost always a higher monthly than the fresh-term version, almost always a dramatically better lifetime-interest result. If matched-term is in your budget, it's the more honest refinance.
- 8
Open the amortization diff for month-level detail
The amortization diff table shows every month of both loans side by side. The cumulative-interest-delta column is the one that matters: it tells you exactly how much more or less interest you've paid by month N of the new loan versus staying on the current one. Download the whole thing as CSV to compare offers or share with a financial advisor.
Features at a glance
Plain-English verdict strip
One sentence at the top synthesizes break-even against your stay horizon. 'Break even in 14 months — worth doing' or 'You'd break even in 38 months but plan to stay 2 years — skip this one.' Color-coded green, yellow, or red so the answer is visible before any other number. Nobody else on the SERP does this conditional synthesis.
Matched-term comparison visible by default
The only honest apples-to-apples comparison for 'am I saving money over the life of the loan.' We recompute the new loan at the same months remaining on your current loan, side by side with a fresh-term option. Incumbents bury this behind an advanced toggle (or skip it entirely), which is how refinancing-while-resetting-the-clock gets framed as savings.
Break-even in months and calendar form
Shows '14 months' and the specific calendar month you'd hit break-even ('October 2027'). Humans reason about dates, not month counts. Lets you mentally match break-even against whatever else is happening in that year — a job change, a planned move, a kid starting college.
Lifetime interest delta in plain numbers
Total interest on the new loan minus total remaining interest on the current loan, with closing costs folded in if they're paid at close. If the delta is positive (refi costs more over full term), the number shows in red. That's the uncomfortable truth most refinance calculators hide behind a lower monthly number.
Three closing-cost styles, modeled honestly
Paid at close (check at closing, clean loan balance), rolled into principal (costs added to the loan, paid off over 30 years of interest), and lender-paid / no-cost refi (costs absorbed via a rate bump, default +0.375% and adjustable). Each produces a different lifetime-interest number; the tool shows the real cost of 'free.'
Cash-out mode with LTV warning
One toggle folds cash-out refinancing into the same UI. Enter the cash you're pulling out, add the home value, and the tool computes the new balance, the post-refi loan-to-value, and warns if you're crossing 80% LTV — where most conventional lenders cap cash-out and where rates typically jump 0.25-0.75%.
Five presets for the common cases
Classic rate drop, big drop with a big balance, small drop late in the loan, cash-out $40k, and a no-cost refi. One tap loads a realistic scenario so you can see the tool's output shape before typing your own numbers.
Amortization diff table and CSV export
Month-by-month comparison of current loan versus new loan: principal paid, interest paid, cumulative interest, balance, and the cumulative delta. Export the entire schedule as CSV to compare in Excel or Google Sheets, or to share with a spouse, loan officer, or financial advisor.
No signup, no redirects, no affiliate pitch
The calculator doesn't ask for your email, doesn't hand you off to a lender, doesn't show you a 'get pre-qualified' banner the moment you tap 'calculate.' Your loan numbers stay in your browser. If you want rate quotes, we'll happily tell you which lenders to shop — just not here, and not in exchange for the answer.
How it works
Break-even is the whole game. It's simply closing costs ÷ monthly savings. Drop $6,000 to save $200/month and you break even in 30 months — so if you'll move or refinance again before then, you lose money no matter how good the rate looks.
The lifetime-interest trap. A lower rate lowers the monthly payment, but if you restart the clock at 30 years on a loan you'd already paid down to 22 years remaining, you stretch the interest back out. It's entirely possible to lower your rate *and* pay more total interest. The tool shows the lifetime-interest delta and a matched-term comparison so you see this instead of getting surprised by it.
Closing-cost styles change the answer:
- Paid at close — you write a check; break-even applies cleanly.
- Rolled into the balance — no cash today, but you finance the costs (and pay interest on them) and your balance goes up.
- No-cost (lender-paid) — the lender covers costs in exchange for a higher rate. There's no upfront cost, so break-even isn't meaningful; the cost shows up as higher lifetime interest instead.
Cash-out and LTV. Taking cash raises your loan-to-value ratio. Above ~80% LTV most conventional lenders raise the rate or push you toward FHA/VA — the tool warns when your post-refi LTV crosses that line.
Common problems and solutions
⚠Assuming a lower rate always saves money
Resetting a paid-down loan to a fresh 30-year term can increase total interest even at a lower rate, because you stretch the balance back out over more years. Check the lifetime-interest delta and matched-term comparison, not just the monthly payment.
⚠Ignoring how long you'll actually stay
If you sell or refinance again before the break-even point, the closing costs never pay off. Enter a realistic stay horizon — the verdict depends on it far more than on the rate.
⚠Thinking rolled-in or no-cost means free
Rolling closing costs into the balance means you borrow and pay interest on them; a no-cost refi buys that with a higher rate. The cost doesn't vanish — it moves into your lifetime interest.
⚠Overlooking LTV on a cash-out
Pulling cash raises your loan-to-value ratio. Cross ~80% and lenders typically raise your rate or change loan products, which can erase the benefit. Watch the LTV warning.
⚠Treating the estimate as a lender quote
This uses simplified amortization and your inputs. Real offers include points, PMI, escrow, and lender-specific fees. Use your official Loan Estimate for the binding numbers — this is for deciding whether to shop, not the final math.
How it compares
Rate-and-term vs cash-out refinance. Rate-and-term just swaps your loan for a cheaper one. Cash-out borrows *more* than you owe and hands you the difference — useful for big expenses, but you're converting home equity into debt at a mortgage rate and resetting the loan. The tool models both and, for cash-out, checks your LTV.
Refinance vs a HELOC (for cash). If the goal is cash and your current mortgage rate is already low, a cash-out refi that resets your whole balance to today's higher rate can be a bad trade — a HELOC or home-equity loan leaves the good first mortgage untouched and borrows only the extra. Compare both before refinancing a low-rate loan just to pull cash.
Fresh 30-year vs matched term. Refinancing into a new 30-year term minimizes the monthly payment but maximizes lifetime interest. Matching the new term to your remaining years (or shorter) captures the rate savings without stretching the payoff — the tool shows the matched-term numbers alongside so you can weigh cash flow against total cost.
Refinance Calculator — FAQ
▶What is the break-even point?
How many months of payment savings it takes to recover your closing costs — closing costs divided by monthly savings. If you'll keep the loan past that point, the refi pays off; if not, it costs you money.
▶Does a lower interest rate always mean I save?
No — this is the biggest refinance myth. Restarting a paid-down loan at a new 30-year term stretches the interest back out, so you can lower your rate and still pay more total interest. Compare lifetime interest and consider a matched term.
▶Should I refinance?
It depends mostly on how long you'll stay versus the break-even point, and on whether you reset the term. If you'll stay well past break-even and keep the term sensible, it usually pays. The tool gives a plain-English verdict from your numbers.
▶What is a no-closing-cost refinance?
The lender pays your closing costs in exchange for a higher interest rate. There's nothing due upfront, so break-even doesn't apply — instead the cost shows up as higher interest over the life of the loan. The tool models this.
▶Is my financial information sent anywhere?
No. All calculations run in your browser and nothing is uploaded. You can model your real loan numbers privately.
▶Is this financial advice?
No. It's a planning estimate using simplified amortization and the figures you enter. It doesn't include points, PMI, escrow, or lender-specific fees. Use your official Loan Estimate and, for big decisions, a mortgage professional.
Useful references
- CFPB — What is a Loan Estimate? — The Consumer Financial Protection Bureau's explainer on the Loan Estimate form lenders are required to provide within 3 business days of application under Regulation Z. The authoritative reference for what closing costs actually include.
- NerdWallet — How to Calculate the Break-Even Point on a Mortgage Refinance — Plain-language walkthrough of break-even math with a worked example. One of the clearest non-lender explanations on the web, useful for double-checking the number this tool produces.
- Forbes Advisor — The No-Cost Refinancing Myth — Forbes's teardown of how 'no closing cost' refinances actually work and why they usually cost more over long horizons. Worth reading before you assume no-cost is a good deal.
- Fannie Mae — Refinance Mortgage Calculator — Fannie Mae's non-commercial refinance calculator. No lender bias, computes the same core numbers. A good cross-check when you want to verify our math against a respected institutional source.
- Center for Responsible Lending — Cash-Out Refinancing Risks — CRL's research on consumer risk in cash-out refinancing, particularly at high LTVs. Authoritative voice on why cash-out deserves more scrutiny than rate-and-term refinances.
- Consumer Financial Protection Bureau — Closing on Your Mortgage — CFPB's guide to the closing process, including the required Closing Disclosure (a newer replacement for the HUD-1). Useful context for what closing costs will look like in the final document versus the preliminary Loan Estimate.
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