Refinance Calculator
See your new payment, monthly savings, and how long it takes to break even on the closing costs of a refinance.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
P&I only — actual savings depend on term, taxes, and insurance. We run a free full break-even analysis before you commit. Estimate only.
A rate-and-term refinance swaps your current loan for a new one at a lower rate, reducing your monthly payment. The catch is closing costs, which you have to recover through your monthly savings before the refinance pays off.
The break-even point tells you how many months it takes for the savings to cover those costs. If you plan to keep the home well past break-even, refinancing usually makes sense.
How to Use This Calculator
- 1
Enter your current loan balance and interest rate.
- 2
Enter the new rate you have been quoted or expect to get.
- 3
Estimate your closing costs for the refinance.
- 4
Read the monthly savings and the break-even point, then compare against how long you plan to stay.
The Formula & Assumptions
Savings = current P&I − new P&I
Break-even months =
closing costs ÷ monthly savings
We compute principal-and-interest payments at your old and new rates on the same balance, then take the difference as your monthly savings.
Dividing closing costs by that savings gives the number of months to recoup the cost. Past that point, the refinance is putting money back in your pocket each month.
This compares principal and interest only. Resetting to a fresh 30-year term lowers the payment but can raise total interest, so also weigh how a new term affects your long-term cost.
Frequently Asked Questions
Is refinancing worth it for me?
Compare your break-even point to how long you plan to stay in the home. If you will keep the loan well beyond the months it takes to recover closing costs, refinancing usually saves money overall.
How much does a refinance cost?
Closing costs typically run about 2% to 5% of the loan. Some programs like FHA Streamline and VA IRRRL reduce documentation and skip the appraisal, which can lower the cost.
Will refinancing reset my loan term?
It can. Refinancing into a new 30-year loan lowers the payment but extends repayment, which may increase total interest. You can also refinance into a shorter term to pay off faster.
Does this include taxes and insurance savings?
No. The comparison covers principal and interest only, since taxes and insurance are largely unchanged by a refinance. We run a full break-even analysis that accounts for your complete payment before you commit.
Ready to Turn Your Estimate Into a Real Pre-Approval?
Get a personalized rate quote and pre-approval from a licensed Florida mortgage broker — no obligation.
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.