Current Mortgage
New Loan
New Monthly Payment
—
Monthly Savings
—
Break-Even
—
Total Interest Saved
—
Net Savings After Closing Costs
—
Calculations run entirely in your browser. No data is stored or transmitted.
Enter your current mortgage details and a new rate to instantly compare payments, total interest, and your break-even timeline.
Calculations run entirely in your browser. No data is stored or transmitted.
A mortgage refinance calculator applies the standard amortization formula to two loans simultaneously: your current mortgage and the proposed new one. By comparing total interest paid, remaining term, and closing costs, it produces three critical numbers — new payment, monthly savings, and break-even point — that together tell you whether the refinance is financially justified.
Rate-and-term refinancing changes only the interest rate, loan term, or both, without extracting equity. This is the most common type and the one this calculator is optimized for. The goal is straightforward: reduce the cost of borrowing. If you also want to tap equity, see our cash-out refinance calculator, which adds the equity withdrawal to your new loan balance before calculating payments.
A homeowner in Texas has $320,000 remaining on a 30-year mortgage at 7.5%, with 26 years left. Monthly P&I is about $2,272. A new 20-year loan at 6.75% with $6,200 in closing costs drops the payment to roughly $2,432 — slightly higher monthly, but eliminates 6 years of payments and saves over $91,000 in total interest. Break-even is approximately 3.5 years. If they plan to stay in the home more than 4 years, this refinance is financially sound.
Resetting to a fresh 30-year term often looks attractive because the payment drops significantly. But much of that saving is illusory — you're simply spreading the same principal over more time, paying additional years of interest. Whenever possible, try to match or beat your remaining term with the new loan. Our refinance savings calculator isolates the total interest comparison so you can see this clearly.