Refinance Calculator: Should You Refinance?
A refinance makes sense when you'll stay in the home long enough to recoup its cost. This calculator compares your current loan to a new one, shows your monthly savings, and, most importantly, tells you your break-even point, the number of months it takes for those savings to pay back the closing costs. If you'll be in the home past that point, refinancing likely pays off. If you might sell before then, it may not.
How to read the result
Enter your current loan (balance, rate, payment) and the new loan terms you're considering. The calculator shows the monthly difference and divides your refinance closing costs by that monthly savings to get your break-even in months. A refinance that saves you $200 a month with $6,000 in costs breaks even in 30 months. Staying five more years? Clearly worth it. Moving in two? Probably not.
What a lower payment can hide
A refinance can lower your monthly payment while increasing your total interest, if it resets you back to a fresh 30-year term. Paying less each month but for more years can cost more overall, even at a lower rate. It's worth understanding this tradeoff, which our guide on when refinancing doesn't make sense covers in detail.
Beyond rate-and-term
This calculator focuses on a straightforward rate-and-term refinance. If you're considering a cash-out refinance to consolidate debt or access equity, the math is different, and worth a real conversation. Rates also move daily with the bond market, so the right moment to lock is its own question.
