Home Refinance Calculator – Compare Payments & Savings

Use this free home refinance calculator to estimate a new monthly mortgage payment, compare it with an estimated current payment, and see how long it may take to recover your refinancing closing costs. Enter your current loan balance, current and new interest rates, proposed loan term, and estimated closing costs to explore a refinancing scenario.

Enter your outstanding mortgage balance and current interest rate, then add the interest rate and repayment term you are considering for the new loan. Include estimated closing costs to see how financing those costs could affect the new payment.

The calculator estimates the current payment using the same term selected for the new mortgage. This is a simplified comparison: if your existing mortgage has a different remaining term, the current payment shown may not match your actual payment.

Use your mortgage statement for the current payment and compare the new loan against the remaining term when assessing potential savings.

Refinancing replaces an existing mortgage with a new loan. A lower interest rate may reduce the monthly payment, but the result also depends on the new loan amount and repayment term. Extending the term can lower the scheduled payment even if you pay interest for more years.

The calculator adds the entered closing costs to the loan balance when estimating the new payment. This assumes those costs are financed. If you pay closing costs upfront instead, the new loan amount and payment may be lower than this estimate, but you would still need to account for the upfront cash expense.

The break-even period estimates how many months of monthly payment savings would be needed to recover the closing costs. For example, if eligible closing costs are $3,000 and estimated monthly savings are $100, the simple break-even estimate is 30 months.

This calculation is useful only when the monthly savings comparison is appropriate and positive. If the new payment is higher, the calculator cannot show a break-even period based on monthly payment savings.

The estimate also does not account for the time value of money, changes in property ownership plans, tax effects, or differences in total interest over the life of the loans.

For a more focused estimate, try our refinance break-even calculator.

A lower monthly payment does not automatically mean refinancing will save money overall. If you restart a long repayment term, you may pay interest for additional years. Compare the remaining cost of your current mortgage with the expected cost of the new loan, including financed fees, the length of time you expect to keep the property, and any applicable prepayment charges.

You can also explore our cash-out refinance calculator if you are considering borrowing more than your current mortgage balance. A cash-out refinance has different goals and may increase the amount of debt secured by your home.

This calculator provides a simplified principal-and-interest comparison. It does not include every possible lender fee, appraisal charge, title expense, escrow adjustment, prepayment penalty, mortgage insurance change, or tax consideration. It assumes the entered rates remain fixed and does not model adjustable-rate changes.

Actual refinancing offers depend on your credit profile, income, property value, loan-to-value ratio, lender criteria and available loan products. Request a formal Loan Estimate and compare the costs and terms before deciding whether refinancing is appropriate for your situation.