Use this calculator to compare your current mortgage with a refinance offer.
Refinance estimate
Compare your current loan with a refinance
Enter your current mortgage and the refinance offer. Results update instantly — monthly difference, break-even, and whether the refinance lowers your lifetime cost or only your monthly payment.
This calculator is global and educational. Currency changes formatting only — it compares principal-and-interest payments, the part a refinance actually changes. Taxes, insurance, and escrow are left out to keep the comparison clean.
Current loan$350,000 · 7.50% · 25 years leftEdit
Your existing mortgage as it stands today — what you still owe, your rate, and how long is left.
$
Principal you still owe (not the original loan amount).
%
Your existing annual rate.
yrs
Whole years left on the current loan.
mo
Extra months (0–11).
Optional. Overrides the computed payment so the comparison matches your statement exactly. Enter principal & interest only — not taxes or insurance.
Current payment$2,586.47
Remaining interest$425,940
Remaining payments$775,940
Current payoffJun 2051
New refinance loan6.50% · 30 yr · $6,000 costsEdit
The offer you are comparing against — rate, term, and the cost to close it.
%
The quoted refinance rate.
yrs
Pick a preset below or type any number.
$
Lender, title, appraisal, recording and other fees. Often 2–5% of the balance. Itemize them in Advanced.
Used for payment dates in the schedule.
Term
Finances the fees instead of paying cash — lowers upfront cash, raises the balance and total interest.
The lender absorbs the fees, usually via a higher rate — enter that higher rate above.
Your planKeep ~7 yrEdit
How long you expect to keep the loan, and how you want to compare it. These shape break-even and the lifetime read.
yrs
Used for break-even and the net-position comparison.
$
Optional. Extra principal on the new loan.
Channels the payment difference into principal — captures the rate benefit without lowering your payment.
Compares the new rate over the same months you have left — isolates the rate benefit from the term reset.
Points, itemized fees, cash-out, and net-present-value. None are required for the core estimate.
%
Estimated cost: $0. Each point is 1% of the financed amount.
$
Equity taken as cash — increases the new balance and long-term cost.
Break the closing costs into lender, title, appraisal, and recording/other fees.
Discounts the monthly savings stream against the upfront cost — for users who think in present-value terms.
Tax note (educational only): mortgage interest may be deductible in some places, which can change the after-tax cost of a refinance. This is not tax advice — rules vary by country and situation, so confirm with a qualified professional.
Lowers payment · raises lifetime cost
Monthly payment savings
+$374 / mo
$2,586.47 → $2,212.24 after refinancing.
Estimated extra lifetime cost
+$26,464
Higher total cost over the life of the loan.
Formula verified 14 June 2026
10-sheet workbook · built in your browser
New monthly payment
$2,212
Principal & interest only.
Current monthly payment
$2,586
Principal & interest only.
Break-even point
1y 5m
Very short recovery · Nov 2027.
Cash needed at closing
$6,000
Upfront, out of pocket.
Estimated extra lifetime cost
$26,464
Total cost over the life of each loan.
Lifetime interest difference
−$20,464
Extra interest vs current loan.
Closing costs used
$6,000
Lender, title, appraisal and other fees.
Payoff date
Jun 2056
Current loan: Jun 2051.
Total cost — current loan
$775,940
Sum of your remaining payments.
Total cost — refinance
$802,404
Payments plus upfront cash.
Educational estimate only — not a lender quote, loan approval, or financial advice. It compares principal-and-interest only. Confirm rates, points, and fees on a lender's official Loan Estimate.
Decision summary
A plain-language read of every dimension under your assumptions — cash flow, recovery, lifetime cost, your planned stay, and whether the saving is the rate or just a longer term.
This improves monthly cash flow but may increase lifetime cost.
The monthly payment is lower, yet the total paid over the life of the new loan is higher — often because the term is reset longer. If freeing up monthly cash is the goal this can help; if minimising total cost is the goal, compare against your current remaining term or a shorter term.
Monthly cash flow+$374 / mo
The new payment is lower.
Break-even recovery1 year and 5 months
Very short recovery · Nov 2027.
Lifetime cost+$26,464
Estimated extra lifetime cost over the life of the loan.
Planned stay (7 years)Refi ahead $15,079
Refinancing is ahead by your planned stay.
Term-reset impact60% rate · 40% term
Most of the payment drop comes from the lower rate.
Closing-cost pressure$6,000 cash
Recovered through the monthly saving over the break-even period.
Same-term comparison+$60,975
Matching the new rate to your remaining term shows the real rate benefit.
Is the refinance saving money, or just stretching the loan?
A lower payment can come from a better rate, a longer term, or both. This splits your monthly payment drop so you can see how much is the rate and how much is simply spreading the balance over more months.
60% rate
40% term
Of the $374/mo drop, about $223 comes from the lower rate and $151 from the longer term.
Current remaining term
25 years
New term
30 years
5 years longer.
Same-term payment
$2,363.23
New rate, your remaining term.
New-term payment
$2,212.24
New rate, the new term.
Extending the term adds about 5 years of payments and roughly $87,439of extra interest versus keeping your remaining term — even at the same rate. To capture the rate benefit without resetting the clock, use the same-term comparison or the “keep paying my old payment” option.
Rate vs total refinance cost
The rate is only part of the cost — points and fees are real money. This estimated cost-adjusted view takes your new payment plus the upfront cash spread across your planned stay, so two offers with different fees can be compared on a fairer footing.
Quoted rate
6.50%
Points
$0
Closing costs
$6,000
Total refinance cost
$6,000
Fees + points (cash or financed).
Total upfront cash
$6,000
Est. cost-adjusted monthly
$2,283.67
New P&I + upfront cash ÷ planned stay.
This is an estimated cost-adjusted comparison, not an official APR. APR and lender disclosures may calculate this differently. Use your lender's Loan Estimate for the official APR, finance charge, and cash-to-close figures.
Refinance at a glance
The most useful chart — before vs after — is first. Each chart has a data table beneath it for exact figures and screen readers.
Monthly payment — before vs after
The headline change to your monthly principal & interest.
Monthly payment — before vs after
Loan
Monthly P&I
Current
$2,586.47
Refinance
$2,212.24
$2,586.47 now versus $2,212.24 after refinancing (+$374 / month).
Show data table
Cumulative savings vs closing costs
Net savings after subtracting upfront cash. Where the line crosses zero is your break-even.
Cumulative savings vs closing costs
Year
Net savings
0
-$6,000
4
$11,963
8
$29,926
12
$47,889
16
$65,852
20
$83,815
24
$101,778
Net savings turn positive around Nov 2027 (1 year and 5 months).
Show data table
Total interest — current vs refinance
Interest left on the current loan versus interest on the new loan over its life.
Total interest — current vs refinance
Loan
Total interest
Current (remaining)
$425,940
Refinance
$446,404
$425,940 remaining now versus $446,404 on the refinance (−$20,464).
Show data table
Loan balance over time
How the balance falls on each loan from the refinance date.
Loan balance over time
Year
Current
Refinance
0
$350,000
$350,000
4
$327,747
$332,708
8
$297,737
$310,298
12
$257,265
$281,254
16
$202,685
$243,612
20
$129,078
$194,827
24
$29,812
$131,602
28
$0
$49,660
Both balances reach zero at their payoff dates — Jun 2051 (current) and Jun 2056 (refinance).
Show data table
Where the refinance money goes
The cost buckets of the new loan: principal, interest, fees, points, and any cash-out.
Where the refinance money goes
Bucket
Amount
Principal (original debt)
$350,000
Interest (new loan)
$446,404
Upfront fees & points
$6,000
Interest is the cost of borrowing; rolled-in costs and cash-out add to the balance you repay.
Show data table
Term-reset impact on payment
Current payment, the new rate over your remaining term, and the new rate over the new term.
Term-reset impact on payment
Basis
Monthly P&I
Current
$2,586.47
Same term
$2,363.23
New term
$2,212.24
60% of the $374 drop is the rate; 40% is the longer term.
Show data table
Net cost at your planned stay
Total cash paid plus the balance still owed at your planned-stay horizon — lower is better.
Net cost at your planned stay
Path
Net cost
Keep current
$523,364
Refinance
$508,285
At 7 years, refinancing is ahead by $15,079.
Show data table
Compare multiple refinance offersEnter 2–4 quotes and see which is lowest payment, lowest lifetime cost, fastest payoff, or shortest break-even.Open
Compare your refinance choices
Each row changes one factor versus your base refinance. Labels are descriptive, never judgmental — no scenario is called “best.”
Lifetime cost difference is positive when refinancing costs less overall, negative when it costs more. Break-even uses upfront cash ÷ monthly savings.
Before vs after refinancing
A side-by-side of your current loan and the proposed refinance, using the same math as the calculator above.
Current loan vs after-refinance comparison
Item
Current loan
After refinance
Loan balance
$350,000
$350,000
Interest rate
7.50%
6.50%
Term remaining / new term
25 years
30 years
Monthly principal & interest
$2,586.47
$2,212.24
Closing costs
$0
$6,000
Total interest
$425,940
$446,404
Total of payments
$775,940
$796,404
Payoff date
Jun 2051
Jun 2056
Estimated extra lifetime cost
$26,464 · break-even 1 year and 5 months
Amortization comparison
Side-by-side interest, principal, and balance for both loans, with the monthly difference and cumulative savings. Yearly view by default; page through the full monthly schedule when you need it.
Scroll down for how break-even works, why a lower payment can still cost more, when refinancing does and doesn't make sense, a worked example, and FAQs.
Compares principal & interest — actual rates, points, and fees vary.
Updated 14 June 2026 · Works in any currency
The refinance that saves $374 a month and costs $26,464 more
A refinance replaces your existing mortgage with a new one — usually to capture a lower rate, change the term, or free up monthly cash. Suppose you owe $350,000 at 7.5% with 25 years left, and you are offered 6.5% on a fresh 30-year loan with $6,000 in closing costs paid in cash.
Current payment
$2,586 / mo
New payment
$2,212 / mo
Monthly saving
+$374 / mo
Break-even
17 months
5-year net saving
≈ +$16,440 cash flow
Lifetime cost difference
−$26,464 (extra cost)
The lower payment recovers the $6,000 of costs in about 17 months — good for monthly cash flow, and within five years you would be roughly $16,000 ahead on payments. But stretching a 25-year balance back out to 30 years adds five more years of payments, so the lifetime total is roughly $26,000 higher even at the lower rate. This is the classic trap: a lower payment is not the same as a lower cost.
Lifetime cost difference
current remaining cost − refinance total cost
Positive means estimated lifetime savings; negative means estimated extra lifetime cost. Refinance total cost includes upfront cash and the new loan's full interest.
So refinancing does not always save money. It tends to make sense when the payment falls, you stay past the break-even point, and the lifetime cost is lower too. But a refinance can lower the monthly payment while raising the total cost — usually when the loan is reset to a longer term — or fail to save anything if the new rate is not low enough or the closing costs are high relative to the saving. Check the break-even and the lifetime cost together, not the monthly payment alone.
How much of the monthly drop is the rate, and how much is five more years
The trap is the term reset: putting a 25-year balance back into a fresh 30-year loan adds five years of payments, and a lower rate spread over more years can still raise total interest. A same-term comparison — 6.5% over the 25 years you have left — would instead show a real lifetime saving, because it captures the rate benefit without resetting the clock.
Turn on the same-remaining-term comparison to isolate the pure rate benefit without the distortion of a longer schedule. A longer term lowers the monthly payment but typically increases the total interest you pay, because you borrow for more years. It can help cash flow in the short term, but if minimising total cost is the goal, compare the same remaining term or a shorter term instead. The term-reset breakdown above shows how much of the saving is just a longer loan.
Break-even at 17 months is only good news if you are still there in month 17
There is no universal break-even number, but a break-even comfortably shorter than how long you plan to keep the loan is generally favourable. If you break even in 18 months and plan to stay five years, the costs are recovered with room to spare. If break-even is longer than your planned stay, the upfront costs may not be recovered.
Refinancing tends to make sense when the rate drop is meaningful, you'll stay past the break-even point, and you're not stretching the term out much further than you have left; it may not make sense if you'll move or refinance again before break-even, or if the only way to lower the payment is resetting to a much longer term.
Break-even point
months = ⌈ upfront cash ÷ monthly saving ⌉
Upfront cash is the closing costs and points you pay out of pocket. With no monthly saving there is no payment-driven break-even.
Monthly payment (P&I)
M = P × [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]
P is the loan amount, r the monthly rate (annual ÷ 12 ÷ 100), n the number of payments. At a 0% rate it simplifies to M = P / n. Both loans use this formula.
Cash, rolled into the balance, or a higher rate — three ways to pay the same $6,000
You can pay closing costs and points in cash, roll them into the new balance, or take a no-closing-cost rate where the lender absorbs them for a higher rate — none of these is free, so compare all three.
A no-closing-cost refinance means the lender covers the closing costs, usually in exchange for a slightly higher interest rate or by adding the fees to the balance. It removes the upfront cash, so the cash break-even is immediate, but the cost does not disappear — it moves into a higher rate or a larger loan, raising the lifetime cost. Compare both ways before choosing.
New loan amount
balance + cash-out + rolled-in costs
Rolled-in closing costs are financed, so they are repaid with interest inside the new loan rather than paid in cash at closing.
A cash-out refinance is handled the same way: add the cash-out amount and it is included in your new loan balance alongside any rolled-in closing costs, so the new payment, break-even, and lifetime-cost figures reflect the larger loan. There is no down payment field, because a refinance replaces an existing loan rather than financing a new home purchase — if you plan to pay down principal at closing, enter your new loan amount as the reduced balance you will actually owe after that payment.
Escrow, APR, and the VA funding fee stay outside this comparison
This calculator compares principal-and-interest payments only, which is the part a refinance actually changes. Escrow items like property taxes and homeowners insurance stay roughly the same regardless of your rate, so leaving them out keeps the comparison clean. You enter the closing costs and points yourself — and can model rolling them in or a no-closing-cost option.
That makes it a planning estimate, not a lender quote. The relative comparison is reliable, but the absolute figures can differ from your real loan — here is what this does not model:
It compares principal and interest only — taxes, insurance, escrow, and HOA are not included unless you add them elsewhere.
It does not calculate the lender's APR or finance charge, which fold in fees differently.
It assumes a fixed rate and the figures you enter; adjustable-rate loans and lender-specific fees can change the outcome.
It does not model the tax treatment of mortgage interest, mortgage-insurance changes, or prepayment penalties.
Advertised rates often assume excellent credit and points paid upfront, so the rate you qualify for may differ.
It models standard principal-and-interest refinance math only, so it does not calculate the VA funding fee or model IRRRL-specific rules. Enter your own rate, term, and closing costs — including any funding fee you choose to roll in — and the payment and break-even math will still be accurate for those numbers.
Outside the US the currency switches to INR, CAD, GBP, EUR, AUD, SGD, or AED and the math works the same everywhere. It does not model country-specific refinance rules — like India's home loan balance transfer process or Canada's mortgage-renewal penalty structure — so treat the result as the underlying rate-and-term math, and confirm local rules with your lender.
Verify before deciding: confirm the rate, points, fees, and cash-to-close on a lender's official Loan Estimate, and consider speaking with a qualified mortgage or financial professional.
Related calculators
Refinancing is one piece of a home-loan decision. These related tools cover the rest:
MortgageEstimate monthly payments, interest, taxes, insurance, PMI, and amortization using practical home-loan assumptions.
Amortization ScheduleBuild a full payment-by-payment schedule showing how each instalment splits between principal and interest.
LoanWork out the monthly payment, total interest, and payoff date for any fixed-rate loan from the amount, rate, and term.
Home AffordabilityEstimate the home price you can afford using the 28/36 debt-to-income rule on your income, debts, down payment, and rate.
APRTurn a loan rate plus fees into the true annual percentage rate so you can compare offers on equal terms.
Debt ConsolidationCompare your existing debts against one new consolidation loan — monthly payment, payoff time, and total interest.
Real Estate InvestmentTotal ROI on a rental property from cash flow, principal paydown, and appreciation, with annualized return and cash-on-cash.
The break-even and lifetime-cost figures here are arithmetic on the loan details and closing costs you enter — this page fetches no live mortgage rates and no lender quotes. The sources below cover the official break-even method, the disclosure to check a quoted offer against, the points trade-off, the published US rate series, and the two things that most often erase a refinance saving: restarting the amortization clock, and a prepayment penalty on the loan being replaced. Links open in a new tab.
This calculator is for educational and planning purposes only. It does not provide financial, tax, legal, or lending advice and is not a lender quote or loan approval. It compares principal-and-interest payments using standard amortization math; advertised rates often assume strong credit and points paid upfront. Actual rates, points, fees, APR, eligibility, and terms vary by lender and location. Verify all figures with a qualified lender before refinancing.
Published the mortgage refinance calculator: monthly savings, break-even point, closing costs, payoff date, and lifetime interest, with an Excel export.
Added a downloadable Excel/CSV workbook generated from your inputs.
Added side-by-side scenario comparison.
Added a full payment-by-payment schedule.
Reviewed the formula and assumptions for accuracy.
Show it to your clients, not just tell them
Mortgage brokers, accountants, and advisors embed this to walk clients through the numbers live — nothing they enter ever leaves their browser.