Mortgage Refinance Calculator

How to use this calculator

The calculator estimates the new amortized principal and interest payment, compares it with your current payment, and divides closing costs by monthly savings.

When to round up

Round up for escrow changes, lender fees, points, loan-term resets, appraisal costs, and how long you expect to keep the home.

When to use this calculator

• Comparing payments before committing
• Testing one financial input at a time
• Preparing questions for a lender, dealer, or budget review

Tips for better estimates

• Use the actual APR and loan term when available.
• Add taxes, insurance, fees, PMI, HOA, or maintenance when they apply.
• Treat the result as a planning estimate, not approval or a quote.

How this calculator is reviewed

This page is checked for inputs, formulas, examples, assumptions, topic fit, and related links. For this calculator, the review also covers balance, APR, payment amount, compounding, fees, taxes, payment timing, and estimate limits.

The sample result is covered by automated tests, and the page links to supporting guides so readers can check the assumptions before acting. If a formula, label, or assumption looks off, send the page URL and your inputs through the contact page.

Formula and methodology

Break-even time = closing costs divided by estimated monthly payment savings.

Result details: This page uses the inputs above to show new principal and interest payment and monthly payment savings in the result area.

Assumptions to check

The key inputs are Current principal and interest payment, New loan amount, New interest rate, New loan term, Closing costs. Confirm APR, payment timing, lender fees, taxes, insurance, payoff terms, and local costs before making financial decisions.

Worked example

Example inputs: Current principal and interest payment: $1850; New loan amount: $285000; New interest rate: 5.75 %; New loan term: 30 years; Closing costs: $5200. With those values, the calculator returns 27.8 months to break even. Estimated refinance break-even is about 27.8 months to break even.

Example scenarios

• Use 27.8 months to break even as a planning number, then compare it with actual quotes, APR, fees, taxes, and insurance.
• Change one input at a time so you can see whether rate, term, down payment, or fees move the result most.
• Use a related calculator before committing if the result affects another financial decision.

Quick reference chart

Common planning mistakes

Using rough rates, forgetting taxes or fees, ignoring insurance and local costs, and treating a planning estimate as a quote or approval.

Cite or embed this calculator

If this calculator helps a blog post, classroom resource, forum answer, seasonal guide, or local planning page, link to the canonical calculator URL so readers can run their own numbers and check the assumptions.

EverydayCalc.org, "Mortgage Refinance Calculator", last updated July 9, 2026, https://everydaycalc.org/calculators/mortgage-refinance-calculator/