Use our refinance calculator to compare your current mortgage with a new loan offer. See your monthly savings, break-even point, and total interest, so you know whether refinancing is actually worth it in 2026.
Refinancing sounds simple, get a lower rate, pay less each month. But the real question is sneakier than that: will the money you save actually outrun what it costs to refinance, before you sell or move? That's exactly what this refinance calculator answers. You enter the loan you have now and the new one you're being offered, and it shows your monthly savings, the point where you break even on costs, and how the total interest stacks up over time.
Right now this matters more for some homeowners than others. As of mid-2026, most people who bought or refinanced in the low-rate years are sitting on mortgages under 6%, and refinancing into today's 6.3–6.7% range would cost them money, not save it. The real opportunity belongs to folks who locked in at 7% or higher during the 2023–2024 peak. This tool helps you figure out which camp you're in.
This refinance calculator is designed to compare two mortgages side by side: the one you have and the one you're considering. Competitor pages consistently frame refinancing around monthly savings, break-even timing, and lifetime interest comparisons, because those are the numbers that actually drive the decision.
This page should stay clearly distinct from other calculators in your mortgage cluster. A mortgage calculator focuses on estimating payments for a new purchase. A mortgage payoff calculator shows how extra payments shorten your existing loan. A mortgage amortization calculator builds the full payment schedule. A refinance calculator is different because its main job is to answer one yes-or-no question: does switching to this new loan actually save me money after costs?
That difference matters for content uniqueness. Users who search for a refinance calculator usually already have a loan quote in hand or are checking whether today's rates justify starting the process.
Think of it as a head-to-head comparison between two loans: the mortgage you have and the one you're considering. It runs both and lays the difference out in plain numbers.
You'll get four things that actually drive the decision. Your new monthly payment, so you can see the drop. Your monthly savings, which is the gap between old and new payments. Your break-even point — how many months of savings it takes to recover your closing costs. And a side-by-side look at the total interest you'd pay on each loan over the years ahead.
Unlike a basic mortgage calculator that just spits out a payment, this one is built for a yes-or-no choice. It folds in closing costs, because a lower rate means nothing if the fees to get there swallow your savings.
You'll need details from your current mortgage and your refinance quote. Here's the order that works:
Enter your current loan balance.
What you still owe today, from your latest statement — not the original loan amount.
Enter your current interest rate.
The rate you're paying right now.
Enter your remaining term.
How many years are left on your existing loan.
Enter the new interest rate.
The rate your lender is offering on the refinance.
Choose the new loan term.
Often 30 or 15 years — but pay attention here, because this choice changes everything (more on that below).
Enter your closing costs.
Typically 2–5% of the loan amount. If you don't have a quote yet, estimate around 3%.
Calculate and compare.
The tool shows savings, break-even, and the interest comparison.
Try a few versions.
Plug in a 30-year new term, then a 15-year, and watch how differently they play out. The same lower rate can either save you a fortune or quietly cost you more, depending on the term you pick.
You don't need the formula to trust the result, but here's the logic behind it.
The calculator works out the monthly principal-and-interest payment for your current loan, then does the same for the proposed new loan using its rate and term. Subtract one from the other and you've got your monthly savings.
Then comes the part most people skip: break-even. The tool divides your total closing costs by that monthly savings to find how many months it takes to earn those costs back. If closing costs are $6,000 and you save $200 a month, you break even in 30 months — two and a half years. Stay in the home past that point and you're ahead; leave before it and the refinance lost you money.
Finally, it adds up the remaining interest on each loan so you can see the lifetime picture, not just the monthly one. That total-interest view is where refinancing decisions sometimes flip.
Three numbers deserve your attention, and they don't always agree.
Monthly savings is the feel-good number — the lower payment that shows up in your budget every month. It's real, but it's not the whole story.
Break-even is the honesty check. It answers the only question that truly matters: will you stay in the home long enough to come out ahead? Compare your break-even month against how long you realistically plan to keep the house. Most homeowners hit break-even somewhere in the 3–5 year range. If you might move in two years, even a great rate may not be worth it.
Lifetime interest is the one that surprises people. A lower monthly payment can still mean more total interest if you stretched the loan back out to a fresh long term. Read all three numbers together, not in isolation.
A few inputs do most of the work:
The bigger the drop from your old rate to the new one, the larger your savings. A common rule of thumb is that a drop of at least 0.5–0.75% starts to make refinancing worthwhile.
These set your break-even point. Lower costs mean you recoup faster; high fees can erase the benefit of a modest rate cut.
This is the hidden lever. Resetting a loan you've paid into for years back to a new 30-year term can lower your payment while raising your total interest.
Larger balances generate bigger monthly savings from the same rate drop, which is why refinancing tends to make more sense on bigger loans.
Not an input the math forces on you, but the single most important factor in whether a refinance is actually smart.
Real numbers make this concrete. These use rough mid-2026 figures.
You owe $300,000 at 7.5% with 27 years left, and you refinance to 6.3% on a new 30-year term. Your payment drops by roughly $250 a month. With $7,500 in closing costs, you break even in about 30 months. Plan to stay past that, and this is a clear winner — the textbook case for 2023–2024 buyers.
Same $300,000 balance, but you're 7 years into a 30-year loan at 6.8%, with 23 years left. You refinance to 6.2%, but back to a fresh 30 years. Your monthly payment falls, which feels great — yet because you just added 7 years of payments back onto the loan, your total interest over the life of the debt can actually rise. Lower payment, higher lifetime cost. This is the trap most people don't see coming.
Take that same mid-loan borrower and refinance into a 15-year term instead. The monthly payment may barely change or even tick up, but the total interest drops dramatically and you're free years sooner. Same rate offer, completely different outcome — all from the term choice.
You owe $200,000 at 5.5% with 20 years left. Today's refinance rates are higher than what you have, so any "savings" disappears once closing costs enter the picture. The calculator quickly shows there's no break-even worth chasing. Sometimes the best move is to keep the loan you've got.
Compare your break-even to your timeline first. If you won't stay past the break-even month, the refinance probably isn't worth it — no matter how shiny the rate looks.
Watch the loan term, not just the rate. Refinancing into a fresh 30-year term resets the clock. If your goal is to save on interest, consider matching your remaining term or going shorter.
Treat "no-closing-cost" refinances with eyes open. The costs don't vanish — they're either rolled into a higher balance or baked into a slightly higher rate. Run the numbers both ways.
Shop at least three lenders. Closing costs and rates vary widely, and the spread directly changes your break-even.
Compare principal-and-interest only. Property taxes and insurance usually stay about the same, so leave escrow out when measuring true savings.
Don't refinance just to save $40 a month. Small rate drops rarely justify thousands in fees. Make sure the savings are meaningful relative to the cost.
It depends on your balance, the size of your rate drop, and your closing costs. A meaningful rate cut on a large balance can save hundreds a month, while a small drop may barely move the needle once fees are counted. Enter your numbers above to see your specific savings.
A common guideline is a drop of at least 0.5% to 0.75%, though the right threshold really depends on your closing costs and how long you'll stay. The break-even result tells you more than any rule of thumb.
It's the number of months it takes for your monthly savings to recover your closing costs. You calculate it by dividing total closing costs by monthly savings. After that point, the refinance starts truly saving you money.
It can, and this matters. If you refinance into a new 30-year loan after paying into your old one for years, you restart the clock — which can lower your payment but increase total interest. Choosing a shorter new term avoids this.
Usually 2% to 5% of the loan amount, covering things like the appraisal, title insurance, origination fees, and escrow setup. On a $300,000 loan, that's often $6,000 to $15,000.
No. The lender either rolls the fees into your loan balance or charges a slightly higher interest rate to cover them. You pay either way — just spread out differently.
If today's rates aren't much lower than yours, extra payments may do more good than refinancing. If rates have dropped significantly, a refinance can win. Running both scenarios is the smartest way to decide.
Disclaimer: This calculator provides estimates for educational and planning purposes only. Actual rates, closing costs, and savings depend on your lender, credit profile, loan terms, and location. Rate figures referenced reflect mid-2026 national averages and change daily. This is not financial advice — confirm details with a qualified mortgage professional before refinancing.