Free Refinance Calculator
A free refinance calculator — compare your current mortgage to a new one, including closing costs and the break-even point.
How the mortgage refinance calculator works
It computes your current payment from the remaining balance, rate and term, then the new payment at the proposed rate and term, and divides your closing costs by the monthly saving to find the break-even point. It also compares lifetime interest, because a lower payment from a longer term can still cost more overall.
Worked example: with current balance of $250,000, current rate of 7.25% and years left on current loan of 27, the mortgage refinance calculator shows monthly payment savings of $261.61.
- Current payment
- $1,760.48
- New payment
- $1,498.88
- Break-even
- 17 mo
- Lifetime interest change
- -$30,802
The formula
Break-even months = closing costs ÷ (current payment − new payment). Lifetime interest = payment × number of payments − balance, compared for both loans.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the mortgage refinance calculator
What is the refinance break-even point?
It is how many months of lower payments it takes to recoup your closing costs. If you plan to keep the home longer than the break-even, the refinance pays off.
Can a lower rate still cost me more?
Yes. Resetting a loan you are 8 years into back to a fresh 30-year term can increase total interest even at a lower rate. Always check the lifetime interest figure, not just the payment.
Are closing costs worth rolling into the loan?
Rolling costs in avoids upfront cash but means you pay interest on them and lengthens break-even. The calculator treats them as an upfront cost so you see the true payback period.
Is the Mortgage Refinance Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.