Refinance Calculator
See whether refinancing pays: new monthly payment, how many months until closing costs are recovered, and total interest on the old loan versus the new one over the time you plan to stay.
Enter your current loan and the refinance you are offered. The calculator compares monthly payments, finds the month closing costs are recovered, and compares total interest over the years you actually expect to keep the home, which is what decides it.
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Quick answers
Common cases, computed by this calculator with the assumptions listed under the method. Select one to load it above.
- Is refinancing $300,000 from 7.5% to 6.25% worth $6,000 in costs if I stay 7 years?
- Refinancing wins by $18,762 over 7 years Verdict Open in the calculator
- How fast does refinancing $200,000 from 6.75% to 6% pay back $4,000 in costs?
- 22 months (simple cash-flow estimate; compare financing costs below) Payment-savings payback Open in the calculator
- Is refinancing $400,000 from 7% to 6.5% worth $8,000 if I move in 3 years?
- Keeping the current loan wins by $2,200 over 3 years Verdict Open in the calculator
Compare financing costs over the same horizon
Each loan is amortized month by month. We compare interest paid over the chosen horizon, plus upfront closing costs for the new loan. Principal payments build equity and are not counted as a financing cost. Remaining balances are shown separately; adding their difference to interest would count the equity adjustment twice.
Payment payback is a separate measure
Closing costs divided by monthly payment savings gives a simple cash-flow payback. It is not an economic break-even: extending the term can lower payments while increasing interest. A shorter loan can cost less even with a higher monthly payment.
Assumptions and example
Closing costs are paid in cash, both loans start with the same balance, rates are fixed, and taxes, PMI and investment returns on payment savings are excluded. At a zero interest rate on both loans, refinancing with $6,000 in fees costs $6,000 more regardless of the payment schedule. Financed closing costs require a different calculation.
Calculation notes updated .