See whether refinancing your mortgage pays off: your new payment, how long it takes to recover closing costs, and what happens to total interest.
Your current loan
$
%
years
New loan
%
$
years
Your refinance results
Monthly payment savings
$0
Break-even point
$0
Current payment (P&I)—
New payment (P&I)—
Remaining interest, current loan—
Total interest, new loan—
Lifetime interest difference—
Net savings over the years you keep it—
Ad placement — in-content unit
How to read these results
The break-even point is your closing costs divided by your monthly savings: how many months it takes for the lower payment to pay back what the refinance cost. If you'll keep the new loan longer than that, the refinance saves money; if you might sell or refinance again sooner, it probably doesn't.
Watch the lifetime interest difference too. If you refinance into a longer term than you have left, part of the lower payment comes from stretching the debt out, and total interest can go up even though the payment goes down. Try a new term that matches your remaining years to compare. Our guide Should I refinance my mortgage? walks through a full example.
"Net savings over the years you keep it" is payment savings minus closing costs, plus the difference in loan balance at that point, so it also accounts for how much principal each loan has paid down. This calculator covers principal and interest only; taxes and insurance don't change when you refinance.
Common questions
What are typical refinance closing costs?
Refinance closing costs usually run about 2% to 6% of the loan amount, covering lender fees, appraisal, title insurance, and recording fees. Compare the Loan Estimate forms from several lenders to see exact costs.
How much lower does my rate need to be to refinance?
There's no fixed rule. What matters is the break-even point: closing costs divided by monthly savings. A small rate drop can still pay off on a large loan you'll keep for many years, while a bigger drop may not pay off if you'll move soon.
Why does my total interest go up even though my payment goes down?
If the new loan has a longer term than your current remaining term, you pay interest for more years. Choose a term close to your remaining years, or keep paying your old payment amount on the new loan, to capture the savings.
Can I roll closing costs into the new loan?
Many lenders allow it. To model that here, add the closing costs to the loan balance and set closing costs to zero. Rolling costs in avoids paying cash up front, but you pay interest on them for the life of the loan.