USA: Mortgage & home
Refinance Calculator
Compare your current mortgage with a new loan to see if refinancing makes sense. The calculator shows the new monthly payment, how much you save each month, how many months it takes to earn back the closing costs, and the difference in total cost over the life of the loan.
How to use the Refinance Calculator
- Enter your current balance, rate and years left.
- Enter the new rate and the new term.
- Add the closing costs and choose whether to roll them into the loan.
- Read the monthly saving and break-even point.
Formula
Example
Refinancing $300,000 from 7.25% (27 years left) to 6.0% for 30 years saves about $314 a month. With $6,000 in costs, break-even is about 20 months.
When refinancing makes sense
- You can lower the rate by about 0.75% or more
- You will stay in the home past the break-even point
- You want to drop PMI or switch from an adjustable to a fixed rate
- You want a shorter term to pay off the home sooner
Watch the term
Restarting a 30-year clock lowers the payment but can raise the total interest you pay. Compare the lifetime cost line, or choose a 20 or 15-year term.
Related free tools
Frequently asked questions
What are typical refinance closing costs?
Usually 2-5% of the loan: lender fees, appraisal, title and recording.
What is a no-closing-cost refinance?
The lender covers the costs in exchange for a slightly higher rate, or the costs are added to the loan.
Does refinancing hurt my credit?
There is a small, temporary dip from the credit check and new account.
Can I refinance with little equity?
Most conventional refinances need at least 5-20% equity; government programs may allow less.
Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.
Last updated: November 2026