Refinance Calculator
Should you refinance? Enter your current loan and the new rate and term you're offered. The calculator shows your new payment, the monthly savings, how long until you break even on closing costs, and — the number that actually decides it — the lifetime savings net of those costs. All in your browser.
Current loan
- Monthly payment
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- Rate
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- Remaining term
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- Remaining interest
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- Total remaining cost
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New loan
- Monthly payment
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- Rate
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- Term
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- Total interest
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- Total cost (incl. upfront)
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The monthly drop is the hook; break-even is the decision
A lower payment feels like an immediate win, but you paid for it with closing costs (and points, if you bought the rate down). The real question is how long you'll stay in the loan. Divide the upfront costs by the monthly savings and you get the break-even month — the point where the refinance starts actually saving you money. The calculator shows it both ways: as a count of months and as a calendar date, with a plain-English verdict. If you can't picture still living there past that date, the refinance probably isn't worth it.
Beware the reset clock
The trap in most refinances is the term reset. Drop from a 7% loan with 24 years left into a fresh 30-year at 6%, and the monthly payment falls nicely — but you've added six years of payments. Total interest can actually rise even though the rate fell. The lifetime-savings figure here nets out closing costs and compares the full interest of each path, so it catches this where a payment-only comparison hides it. If you want both the lower rate and less total interest, refinance into a term no longer than what you had left.
When a longer term still makes sense
Sometimes the lower payment is the point — to free up cash flow, ride out a tight stretch, or invest the difference. That's a legitimate choice; just make it with eyes open. Use the lifetime figure to see what the flexibility costs, then decide if it's worth it.
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FAQ
Is anything I enter sent to a server?
No. The calculator runs entirely in your browser — open DevTools → Network and confirm. Your loan details never leave the tab.
What is the break-even point?
The break-even is how long it takes for your monthly savings to add up to the closing costs you paid to refinance. If a refi saves you $150/month and costs $4,500 to do, you break even in 30 months. Stay in the home past break-even and the refinance pays off; sell or refinance again before it, and you lost money on the costs.
Why does a lower rate sometimes cost more overall?
Because refinancing usually resets the clock. If you have 24 years left and refinance into a fresh 30-year loan, you're stretching the balance over more years — so even at a lower rate, total interest can rise. That's why this tool shows lifetime savings net of closing costs, not just the monthly drop. Watch that number when the new term is longer than what you had left.
Should I roll closing costs into the loan?
You can, and many "no-cost" refinances do exactly that (or charge a slightly higher rate instead). Rolling costs in keeps cash in your pocket but means you pay interest on those costs for years. Tick "Roll closing costs & points into the new loan" and the calculator does it honestly: nothing due at closing and the break-even is immediate, but the new loan is bigger, so watch the lifetime-savings figure — that's where the rolled-in costs show up.
What are points, and should I pay them?
A point is prepaid interest: 1 point costs 1% of the new loan amount and typically buys the rate down by roughly 0.25%. Enter the points your lender quotes and the calculator adds their cost to the upfront total (or to the loan, if you roll costs in). Points only pay off if you keep the loan well past break-even — the longer you stay, the more sense they make. Compare the same loan with and without points using two browser tabs.
What rate drop makes refinancing worth it?
There's no magic number like "1%" — it depends on your balance, how long you'll stay, and the closing costs. A big balance makes a small rate drop worthwhile; a small balance needs a bigger drop to clear the costs. Run your actual numbers: if you'll stay well past the break-even month and lifetime savings is positive, it's worth a closer look.
Does this include taxes, insurance, or PMI?
No — it compares principal-and-interest only, which is where a rate change actually shows up. Property tax and insurance don't change because you refinanced. If your new loan removes PMI (because your equity crossed 20%), that's an extra monthly saving this tool doesn't count, so the real benefit could be larger.