Mortgage & Real Estate
Refinance Calculator
Compare your current mortgage payment with a refinance and estimate the fee break-even point.
Best for: Compare a current mortgage with a proposed refinance and estimate monthly savings and the closing-cost break-even point.
Your result
Refinance estimate
- Estimated monthly savings
- $248.55
- New monthly payment
- $2,013.14
- Current monthly payment
- $2,261.69
- Fee break-even
- 26.15 months
Break-even is shown in months and does not include tax effects, rate locks, prepayment penalties, or a changed payoff date.
How to use this refinance calculator
Use this refinance calculator to compare the payment on your remaining mortgage with a proposed new loan and estimate how long monthly savings could take to recover closing costs.
- 1
Describe the remaining mortgage
Enter the current balance, rate, and years remaining rather than the original purchase loan.
- 2
Enter the complete refinance offer
Use the proposed rate, new term, and closing costs, including fees that would be paid or financed.
- 3
Compare break-even with your horizon
Evaluate whether you expect to keep the mortgage beyond the estimated month when savings recover costs.
Worked planning example
Example: lower rate with a restarted term
Set up
Model the current balance and remaining term, then enter a lower-rate refinance with its new term and closing costs.
Compare
Compare monthly savings and break-even time while checking whether the longer new term increases total interest.
Takeaway
A lower payment can come from both a lower rate and a longer repayment period; those effects should be separated.
A refinance needs enough time to earn back its costs
Break-even is most useful when evaluated alongside the expected ownership and loan horizon.
- Compare total interest over the period you expect to keep the loan.
- Distinguish costs paid upfront from costs added to the new balance.
- Account for points, escrow adjustments, and any prepayment restrictions.
Calculation methodology and assumptions
For this refinance estimate, Silvia uses remaining loan balance, current interest rate, years remaining, new interest rate, new loan term, refinance closing costs. Compare your current mortgage payment with a refinance and estimate the fee break-even point. Results are estimates, not quotes, tax advice, or investment recommendations.
Frequently asked questions
What is the refinance break-even point?
It is the estimated number of months required for recurring payment savings to recover the entered refinance closing costs.
Can refinancing lower my payment but cost more?
Yes. Restarting or extending the term can lower the payment while increasing the number of payments and potentially total interest.
Does this calculator model cash-out refinancing?
It compares the remaining balance with a proposed replacement loan. Additional cash borrowed should be added to the proposed balance and evaluated as new debt.
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