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
Current vs New Payment
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.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
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.
It compares your current mortgage to a new one. You see your monthly savings, the closing costs, and the break-even point where refinancing starts paying off.
Refinance Calculator in Florida
Florida's documentary stamp and intangible taxes apply to a refinance just as they do to a purchase, so closing costs here push the break-even point out a few months further than in states without those taxes. Factor that in before assuming a small rate drop is worth it.
How the Refinance Calculator Works
The calculator computes your new payment at the proposed rate and term, subtracts it from your current payment to find monthly savings, then divides closing costs by those savings to find how many months it takes to break even.
The Refinance Formula, Explained
Break-even months = closing costs / monthly savings
A refinance makes sense when you stay in the home past the break-even point. If you plan to sell or refinance again before then, the closing costs outweigh the savings.
Resetting the term matters. Refinancing a 25-years-remaining loan back to 30 years lowers the payment but can raise total interest. The calculator shows the monthly trade-off so you can judge the long-term cost.
The Complete Refinance Calculator Guide
Refinancing replaces your current loan with a new one, usually to lower the rate, shorten the term, or change the loan type. The decision hinges on one number: the break-even point where accumulated savings finally cover the closing costs.
A common rule of thumb is to refinance when you can drop your rate by at least 0.5% to 0.75% and you will stay past break-even. But rules of thumb are no substitute for running your own numbers, which is what this tool does.
Watch the term reset. Lowering your payment by stretching the loan back to 30 years can cost more interest over time even at a lower rate. If your goal is to pay less interest overall, model a shorter term alongside the lower rate.
Refinance Calculator FAQ
When is refinancing worth it?
When your monthly savings recover the closing costs before you plan to leave the home. The calculator shows your break-even month; staying past it means the refinance pays off.
Does refinancing restart my loan?
It can. A new 30-year loan resets the clock, which lowers the payment but can increase total interest. Choosing a shorter new term avoids that while still capturing a lower rate.