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Mortgage Refinance Calculator
Mortgage refinance calculator
Compare your current mortgage payment to a refinanced rate and closing costs to estimate monthly savings and break-even timing.
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Quick answer: Mortgage Refinance Calculator
Compare old vs new P&I, then divide closing costs by monthly savings to see break-even months.
Example: $320k balance, 7% → ~$2,132/mo; same term at 6% → ~$1,919/mo; $6k costs ÷ $213 ≈ 28 months to recover closing.
Calculations follow the documented formula on this page; rounding and input units can change the last digit—treat outputs as educational estimates unless you reconcile with source systems.
* This is an estimate. Actual amounts may vary slightly based on input assumptions.
What this calculator does
- Mortgage Refinance Calculator
- See payment savings and refinance break-even months.
Refinance math is amortization twice: what you pay now on the remaining balance vs a fresh note at a lower rate. Break-even ignores time value of money but is the quick gut check.
Compare your current mortgage payment to a refinanced rate and closing costs to estimate monthly savings and break-even timing.
Inputs on this page: Current Mortgage Balance, Current Interest Rate (%), New Interest Rate (%), Remaining Term (Years). Assumptions stay visible so you can reproduce the figure elsewhere.
When to use it
- Use Mortgage Refinance Calculator when you need a transparent mortgage refinance calculator answer before you commit numbers to a spreadsheet, invoice, or conversation.
- Reach for it when you already know (or can estimate) Current Mortgage Balance and want the dependent result without rebuilding the formula by hand.
- Skip it when you need certified advice, signed-off payroll, or a lender’s official quote—those require the primary institution’s systems.
Key takeaways
- Cash-out refis change LTV risk and total interest paid - don’t only stare at payment.
- If you reset to 30 years, payment can drop while lifetime interest rises.
- Lender credits vs points flip the break-even - model both scenarios.
How to use this tool
- 1Enter your current loan balance, interest rate, and remaining years.
- 2Add the new quoted rate and expected closing costs.
- 3Calculate to compare payments and months to break even.
- 4Decide if you will stay in the home long enough to recover costs.
Guides and explainers
Long-form walkthroughs that pair well with this calculator. When you need narrative context beyond the live fields, start here and return to the tool to plug in your own numbers.
APR vs interest rate on mortgages and auto loans (2026)
Separate note rate from APR, walk a financed-fee auto example, decode mortgage disclosures at a high level, and link to amortization, PITI, and credit-card payoff tools on Toollabz.
Read guide →How loan amortization works: principal, interest, and schedules (2026)
Understand fixed-payment amortization with a $18k/48-month example, why early payments are interest-heavy, how APR differs from nominal rate, and which Toollabz loan calculators mirror each question.
Read guide →Refinance break-even: when the closing costs actually pay back (2026)
Learn the simple break-even months formula for US refinances, see a $6,200 / $185 example, and use Toollabz’s refinance break-even calculator with your loan details.
Read guide →
Practical scenarios
People who care about mortgage refinance calculator use Mortgage Refinance Calculator as a planning sandbox: Cash-out refis change LTV risk and total interest paid - don’t only stare at payment.
Continue in the Finance tools collection or the glossary. Related calculators in this session: Loan Calculator, Early Loan Payoff Calculator, Mortgage Affordability Calculator USA, Debt Payoff Calculator Avalanche, Salary After Tax Calculator UK, VAT Calculator.
Key formula explained
How the calculation works
The Formula
Amortized payment at old vs new rate; Break-even Months = Closing Costs / Monthly Savings- Current Mortgage Balance: the value you enter for current balance.
- Current Interest Rate (%): the value you enter for current rate.
- New Interest Rate (%): the value you enter for new rate.
- Remaining Term (Years): the value you enter for remaining years.
- Refinance Closing Costs: the value you enter for closing costs.
| This tool | Amortized payment at old vs new rate; Break-even Months = Closing Costs / Monthly Savings |
|---|---|
| Related intent: mortgage refinance calculator | See paired tools for mortgage refinance calculator-each page documents its own core relationship next to the live form. |
| Related intent: refinance break even calculator | See paired tools for refinance break even calculator-each page documents its own core relationship next to the live form. |
Core relationship for Mortgage Refinance Calculator:
Amortized payment at old vs new rate; Break-even Months = Closing Costs / Monthly Savings
Worked check: $320k balance, 7% → ~$2,132/mo; same term at 6% → ~$1,919/mo; $6k costs ÷ $213 ≈ 28 months to recover closing.
Related calculations
Keep the same assumptions and open a neighbor calculator when your question branches: Loan Calculator, Early Loan Payoff Calculator, Mortgage Affordability Calculator USA, Debt Payoff Calculator Avalanche. Each page documents its own formula beside the fields.
Learning links: Methodology · Editorial policy · Glossary
Worked real-world example
$320k balance, 7% → ~$2,132/mo; same term at 6% → ~$1,919/mo; $6k costs ÷ $213 ≈ 28 months to recover closing.
Re-enter the same numbers in the calculator above to confirm the page math matches the interactive result.
Who uses this tool?
People who care about mortgage refinance calculator use Mortgage Refinance Calculator as a planning sandbox: Cash-out refis change LTV risk and total interest paid - don’t only stare at payment.
Common mistakes
- For Mortgage Refinance Calculator, mismatched units or periods (monthly vs annual, % vs decimal) are the fastest path to a believable wrong answer on mortgage refinance calculator.
- Watch for this pitfall: If you reset to 30 years, payment can drop while lifetime interest rises.
- If you paste the result into a decision doc, note the formula and the page date (2026-07-18) so teammates can reproduce it.
References & sources
Official references for context. Calculator outputs are planning estimates—confirm material decisions with the primary authority or a qualified professional. See our methodology and editorial policy.
- Toollabz methodology — How we document formulas and update pages
- HMRC — Income Tax rates and Personal Allowances
- HMRC — National Insurance
- IRS — Tax topics (US)
- Consumer Financial Protection Bureau
- Bank of England — Bank Rate
Content last updated 2026-07-18
FAQs
Click a question to expand the answer.
Is the Mortgage Refinance Calculator free to use?
Yes, the Mortgage Refinance Calculator is completely free with no hidden limits.
Can I use Mortgage Refinance Calculator on mobile?
Yes. All tools are optimized for desktop, tablet, and mobile devices.
How is break-even calculated?
Closing costs divided by monthly payment savings gives months to recover upfront fees.
Does this include escrow or PMI?
No - add taxes, insurance, and mortgage insurance separately for a full housing payment view.
Is this the same as the other refinance tool?
Yes, it shares the same math with a dedicated slug for refinance-intent searches.
What does Mortgage Refinance Calculator calculate in plain English?
Compare old vs new P&I, then divide closing costs by monthly savings to see break-even months.
Can you show a worked example for Mortgage Refinance Calculator?
$320k balance, 7% → ~$2,132/mo; same term at 6% → ~$1,919/mo; $6k costs ÷ $213 ≈ 28 months to recover closing.
Is Mortgage Refinance Calculator a substitute for professional advice on mortgage refinance calculator?
No. Treat this as a planning estimate. Confirm material decisions with HMRC, the IRS, a licensed adviser, or a clinician as appropriate.
Next step
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Built and maintained by Imtiaz Ahmad
Founder and lead engineer | Content updated July 18, 2026
See methodology and editorial policy.