How this mortgage refinance calculator works
The calculator estimates the current payment if needed, estimates a new loan payment, then compares monthly payment change, refinance costs, break-even months and amortised interest over the comparison period entered.
What refinance break-even means
Break-even is the estimated time for monthly payment savings to recover refinance costs. If the new payment is higher, there is no monthly-payment break-even in this simple estimate.
Payment savings vs total interest
A lower monthly payment can still mean more interest over time if the new term is longer or the balance is higher. The interest comparison uses the comparison period entered, not a guarantee of total lifetime cost.
What happens when costs are rolled into the new loan
Rolling costs into the loan reduces upfront cash needed, but it increases the new loan balance and can add interest over time.
What this calculator does not include
This calculator provides general estimates only. It is not financial, tax, legal, accounting or mortgage advice. It does not account for lender approval, credit score, changing rates, adjustable-rate products, tax rules, prepayment penalties or all refinance costs.
Key terms and assumptionsFormula notes, key terms, source assumptions and limits used in this calculator.
These notes are specific to this calculator. Read the property methodology notes for shared property formulas, region settings and estimate limits.
- Current payment
- If current monthly payment is left at 0, the calculator estimates it from current balance, rate and remaining term.
- New loan amount
- The new loan amount starts with the current balance and adds cash-out amount plus refinance costs if costs are rolled into the loan.
- Break-even
- Break-even months estimate how long monthly payment savings take to recover refinance costs.
- Comparison period
- Interest comparison uses an amortisation estimate over the comparison period entered.
- Lower payment vs total cost
- A lower monthly payment can still come with higher interest if the new term is longer or the balance increases.
- Region settings
- Region settings change defaults, labels and currency formatting only. They do not convert exchange rates.
Guides and methodology
Plain-English notes that explain the assumptions behind related calculators and tools.
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FAQs
What is refinance break-even?
It is the estimated time for monthly payment savings to recover refinance costs.
What if the new payment is higher?
The calculator can still compare interest and costs, but there is no monthly-payment break-even when the new payment is higher.
Should refinance costs be paid upfront or rolled into the loan?
The calculator can show either assumption. Rolling costs into the loan increases the new balance.
Does this include tax effects?
No. It is a general pre-tax estimate and does not include tax treatment or local rules.
Does a lower payment always mean lower total cost?
No. A longer term can lower the payment while increasing interest over time.
What is cash-out refinancing?
It means borrowing more than the current balance and receiving the difference as cash.
Can I use this outside the United States?
Yes. Region settings change defaults, labels and currency formatting only. They do not perform exchange-rate conversion.
Is this mortgage advice?
No. This is a general estimate, not mortgage, financial, tax, legal or accounting advice.