Calculators / Home & loans

Refinance calculator

A lower rate isn't automatically a win — closing costs and a reset clock can eat it. This shows the break-even month and the honest lifetime difference. Nothing you type leaves this page.

$

Enter $1,000 to $20,000,000.

%

Enter 0.1 to 25%.

yrs

Enter 1 to 40 years.

%

Refinancing usually starts making sense around 0.75–1% below your current rate.

Enter 0.1 to 25%.

$

Typically 2–6% of the loan: origination, appraisal, title, recording.

Enter $0 to $200,000.

Monthly payment change

New payment

Break-even

Lifetime difference

Keep old payment → paid off in

Total money out the door — staying put vs. refinancing

Remaining balance by year, old vs. new

How this is calculated

Both paths are simulated month by month. Staying put means your current payment at your current rate until the balance hits zero. Refinancing means closing costs (upfront, or added to the balance if you roll them in), then the new payment at the new rate.

Break-even is the month the refinance's cumulative cost drops below the old loan's — before it, the refinance is behind; after it, every month is savings. If you might sell or move before break-even, refinancing loses money.

The term-reset trap, and the escape

Refinancing 26 remaining years into a fresh 30-year loan lowers the payment partly by adding four years of payments — the lifetime-difference number accounts for that honestly, which is why a lower payment can still show a negative lifetime result. The escape: refinance to the lower rate but keep paying your old payment. The "keep old payment" figure shows how fast the loan dies then — usually years earlier than your current path, with the rate cut doing all the work.

Notes

Assumes fixed rates and no prepayment penalties. Cash-out refinancing, points, and rate-buydown trade-offs aren't modeled. Tax effects of mortgage interest aren't included — with the standard deduction this high, they rarely change the answer.