ToolPile - Free Online Tools & Calculators

Refinance Calculator

Compare your current mortgage with a refinanced loan. Calculate monthly savings, total interest saved, break-even point, and view a side-by-side amortization comparison to decide if refinancing is right for you.

Current Loan

Remaining Balance ($)

Current Interest Rate (%)

Remaining Years

+ Months

Current Monthly Payment ($)

$1,890.58

New Loan

New Interest Rate (%)

New Loan Term

Closing Costs ($)

1.6% of loan balance

Discount Points

New Monthly Payment

$1,546.17

vs $1,890.58 current

Monthly Savings

$344.41

/month

Break-Even Point

14 mo

~1.2 years

Total Interest (Current)

$287,174.02

Total Interest (New)

$276,621.33

Interest Savings

$10,552.68

Total Closing Costs

$4,500.00

Total Cost (Current Loan)

$567,174.02

300 payments

Total Cost (New Loan)

$561,121.33

360 payments + costs

Net Lifetime Savings (incl. closing costs)

$6,052.68

Refinancing saves you money. You would save $344.41/month and $6,052.68 over the life of the loan. You will recoup closing costs in 14 months.

How to Use the Refinance Calculator

This refinance calculator helps you compare your existing mortgage against a potential new loan. Enter your current loan details on the left, adjust the new loan terms on the right, and instantly see whether refinancing makes financial sense for your situation.

Step 1: Enter Your Current Loan Details

Start with your remaining loan balance (not the original loan amount), your current interest rate, and how many years and months remain on your loan. The calculator will auto-compute your current monthly payment, or you can enter it manually if yours differs due to escrow or other factors.

Step 2: Configure the New Loan

Enter the interest rate you expect on the new loan, the desired loan term, estimated closing costs, and any discount points you plan to purchase. Closing costs typically range from 2% to 5% of the loan amount and include appraisal, title, and origination fees.

Step 3: Analyze the Results

Review the summary card showing your new payment, monthly savings, and break-even point. The amortization comparison chart visualizes how each loan's balance declines over time, making it easy to see which option pays off faster and costs less in total interest.

When Refinancing Makes Sense

Your new rate is at least 0.5% lower than your current rate
You plan to stay in the home longer than the break-even period
You want to switch from an adjustable-rate to a fixed-rate mortgage
You want to shorten your loan term to build equity faster
You need to eliminate PMI by refinancing with 20%+ equity

Frequently Asked Questions

How do I know if refinancing my mortgage is worth it?+

Refinancing is generally worth considering when you can lower your interest rate by at least 0.5–1%, plan to stay in the home long enough to pass the break-even point, or need to switch from an adjustable-rate to a fixed-rate mortgage. Use the break-even calculation to see how many months of savings it takes to recoup closing costs.

What is the break-even point on a mortgage refinance?+

The break-even point is the number of months it takes for your monthly payment savings to equal the total closing costs of the refinance. For example, if closing costs are $4,500 and you save $150/month, your break-even point is 30 months. If you plan to stay in the home beyond this point, refinancing saves you money.

What are typical closing costs for a mortgage refinance?+

Typical refinance closing costs range from 2% to 5% of the loan amount and may include application fees, appraisal fees, title insurance, origination fees, and prepaid items like taxes and insurance escrow. On a $280,000 loan, expect $5,600 to $14,000 in closing costs.

What are mortgage points and should I buy them?+

Mortgage discount points are upfront fees paid to the lender to reduce your interest rate, typically costing 1% of the loan amount per point and reducing the rate by about 0.25%. Buying points makes sense if you plan to keep the loan long enough for the monthly savings to exceed the upfront cost.

Does refinancing restart my mortgage clock?+

Yes. Refinancing replaces your existing loan with a new one, so if you refinance into a new 30-year term after paying 5 years on your original mortgage, you will have 30 new years of payments. However, you can choose a shorter term (such as 15 or 20 years) to avoid extending your payoff date significantly.

Can I refinance with bad credit?+

While it is harder to refinance with a low credit score, options exist. FHA streamline refinances, VA IRRRLs, and USDA streamline refinances have more lenient credit requirements. Conventional refinances typically require a minimum score of 620, though better rates are available at 740 and above.