Refinance Calculator
Compare your current mortgage to a refinance offer: monthly savings, breakeven time, and lifetime interest.
How the calculation works
Calculates what you'd pay monthly on the current loan's remaining balance at its current rate and remaining term, versus a new loan on that same balance at the new rate and new term. The monthly difference is your savings (or added cost, if negative). Dividing the closing costs by the monthly savings gives the breakeven point, how many months it takes for the savings to cover what you paid to refinance; refinancing tends to make sense if you plan to stay in the loan well beyond that point.
Formula
Monthly Savings = Current Payment − New Payment. Breakeven Months = Closing Costs ÷ Monthly Savings. Both payments come from the standard amortization formula on the current balance.
Examples
$300,000 balance, 7% → 6%, 28-year remaining → 30-year new, $4,000 closing costs
$240.17/month savings, breakeven in 17 months, $37,530.92 less lifetime interest
$180,000 balance, 6.75% → 5.5%, 20-year remaining → 20-year new, $3,000 closing costs
$130.46/month savings, breakeven in 23 months, $31,309.94 less lifetime interest