Refinance Savings Calculator
Enter your current loan details and a potential new rate to instantly see your monthly savings, total savings, and how many months until refinancing pays for itself.
How it works
Both the current and new monthly payments are calculated using standard amortization. Monthly savings = current payment minus new payment. Break-even = closing costs divided by monthly savings, rounded up to the nearest month. Total savings compares the remaining cost of your current loan against the full cost of the new loan including closing costs.
Frequently Asked Questions
What is the break-even point?
The break-even point is the number of months it takes for your cumulative monthly savings to cover the closing costs of the refinance. If your closing costs are $4,000 and you save $200 per month, you break even in 20 months. After that, every payment represents pure savings.
Should I always refinance when rates drop?
Not always. If you plan to sell or pay off the loan before reaching the break-even point, the closing costs will cost more than you save. A good rule of thumb: refinance if you can lower your rate by at least 0.75–1% and you plan to stay in the home past the break-even date.
Does refinancing reset my amortization?
Yes. A new loan starts a fresh amortization schedule, meaning early payments are again mostly interest. If you are far into your current loan and only a few years from payoff, extending to a new 30-year term could increase total interest paid even if the monthly payment drops.
What closing costs should I expect?
Refinance closing costs typically run 2–5% of the loan balance, covering origination fees, appraisal, title search, and government recording fees. Some lenders offer no-closing-cost refis by rolling costs into the rate — this calculator lets you model any amount.