Should I Refinance Calculator
Use this calculator to see how much interest you can save by refinancing your mortgage!
How the should i refinance calculator works
It compares your current payment with the new one, finds how many months of savings it takes to recoup the closing costs, and gives a clear verdict based on whether you break even before you plan to move.
Worked example: with current balance of $250,000, current rate of 7.25% and years left on current loan of 27, the should i refinance calculator shows yes — refinancing pays off of $261.61/mo saved.
- Current payment
- $1,760.48
- New payment
- $1,498.88
- Break-even
- 17 mo
- Verdict
- Refinance
The formula
Monthly saving = current payment − new payment. Break-even = closing costs ÷ monthly saving. It is worth it if break-even is within the years you will stay.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the should i refinance calculator
Should I refinance my mortgage?
Refinancing pays off when the monthly saving recoups the closing costs before you move or sell. The calculator gives a clear yes, no, or borderline based on your numbers.
What is the refinance break-even point?
The number of months of lower payments needed to cover the closing costs. Stay past it and you come out ahead; sell before it and you lose money on the refinance.
Can refinancing cost more even at a lower rate?
Yes — resetting to a fresh 30-year term can raise total interest even if the payment drops. Check the lifetime interest, not just the monthly saving.
Is the Should I 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.