Calculator inputs
Estimate potential monthly savings and break-even time when refinancing a mortgage.
Enter the amount in the currency you are using. Keep the same currency across money fields.
Enter the current annual percentage rate, not a decimal. For example, enter 7 for 7%.
Enter the length of the period using the unit shown in the label.
Enter the new annual percentage rate, not a decimal. For example, enter 6 for 6%.
Enter the length of the period using the unit shown in the label.
Upfront costs paid to complete the new loan, such as lender, legal, appraisal and settlement fees.
Controls rounding in the displayed result only; it does not change the underlying calculation.
How this calculator works
The calculator estimates the current payment, the new payment and the simple break-even period from upfront refinance costs.
Change one input at a time to compare scenarios clearly. This is useful for planning, but it should not be treated as a final quote, tax calculation, lending decision, employment advice or professional recommendation.
Formula
Worked example
If refinancing saves $180 per month and costs $3,600 upfront, the simple break-even point is 20 months.
Refinance calculator FAQ
What is a refinance break-even point?
It is the number of months it takes for estimated monthly savings to recover the refinance costs.
Should I refinance if the payment is lower?
Not automatically. Check fees, total interest, term length, rate type, and how long you expect to keep the loan.
What if the new payment is higher?
A higher payment can still make sense if the loan term is shorter and total interest falls, but this calculator focuses on payment savings and simple break-even time.
Does this include taxes and insurance?
No. It estimates loan payment differences from the values entered. Real mortgage costs can include taxes, insurance, account fees, offset features, and local charges.
Compare related mortgage scenarios
After estimating refinance savings, compare the result with affordability, amortization, extra repayment, and rent-versus-buy scenarios. This gives the page stronger practical value and helps users move through the mortgage topic cluster.
Refinance costs to check before deciding
- Application, valuation, legal, settlement, discharge, and government fees.
- Break costs or early repayment fees on the existing loan.
- Whether costs are paid upfront or rolled into the new loan balance.
- Whether the new loan restarts the repayment term and increases lifetime interest.
Refinance worked examples
Example 1: If the new loan saves $180 per month and closing costs are $3,600, the simple break-even point is 20 months. If you plan to keep the loan longer than that, the refinance may be worth deeper investigation.
Example 2: If savings are only $60 per month and costs are $4,800, the break-even point is 80 months. That may be too long if you expect to sell, move, or refinance again before then.
How to judge a refinance result
A refinance can lower the monthly payment, reduce the interest rate, change the loan term, consolidate debt, or release cash. The lowest monthly payment is not always the best outcome because a longer term can increase total interest even when the monthly number falls.
Use the break-even result to ask a practical question: will you keep the loan long enough for the monthly savings to recover the upfront costs?