Refinance Calculator
Compare your current mortgage with new refinance terms to estimate payment change, break-even point, and lifetime interest impact.
Refinance Calculator for Payment and Break-Even Analysis
This refinance calculator compares your current loan against a proposed new loan using balance, rates, terms, and closing costs. It shows monthly payment change, break-even timing, and estimated long-term interest impact.
How Break-Even Is Calculated
Break-even months are calculated as closing costs divided by monthly savings. If the refinance reduces your payment by $200 per month and costs $6,000, the break-even is about 30 months.
Rate Reduction vs Term Reset
A lower rate can still result in more total interest if you reset into a much longer term. It helps to evaluate both monthly cash flow and total cost over time.
Rolling Costs Into the Loan
Rolling refinance costs into principal reduces upfront cash required, but increases borrowed balance and can raise total interest paid across the new term.
Frequently Asked Questions
What is a good refinance break-even period?
Many homeowners target break-even within two to three years, but it depends on expected time in the property.
Should I refinance for a lower rate only?
Usually rate reduction helps, but you should also compare term length, costs, and how long you plan to keep the loan.
Can cash-out refinancing reduce payments?
It can, but taking cash out increases principal. Payment outcomes depend on the combined effect of rate, term, and new balance.
Does this include taxes and insurance?
No. This tool compares loan payment economics (principal and interest) plus refinance costs.