Refinance Calculator
Free refinance calculator — compare your current mortgage to a new refinanced loan, calculate monthly savings, break-even point, and total interest saved over the life of the loan.
Monthly Savings
$0
Break-Even
-- mo
Total Interest Saved
$0
New Payment
$0
Current Mortgage
$
%
$
New Mortgage (Refinanced)
%
$
Formula Used
Break-Even Months = Closing Costs / Monthly Savings
Monthly Savings = Current Payment - New Payment
Total Interest Saved = (Current Total Interest) - (New Total Interest) - Closing Costs
Where:
Closing Costs = 2-6% of new loan amount
Current Payment = Existing mortgage monthly payment
New Payment = Refinanced mortgage monthly payment
Frequently Asked Questions
When does refinancing a mortgage make sense?
Refinancing makes sense when you can lower your interest rate by at least 0.5-1% and plan to stay in the home long enough to recoup the closing costs (typically 2-5 years). You may also refinance to switch from an adjustable-rate to a fixed-rate mortgage, eliminate PMI, shorten your loan term, or tap home equity with a cash-out refinance. Use CalcDeck's free refinance calculator to calculate your break-even point and lifetime savings.
How much does it cost to refinance a mortgage?
Mortgage refinance closing costs typically range from 2% to 6% of the loan amount. For a $300,000 refinance, expect $6,000 to $18,000 in total costs including origination fees, appraisal, title search, and recording fees. Many lenders offer 'no-cost' refinances that roll costs into the interest rate — you pay a higher rate instead of upfront fees. Always compare APR (not just the rate) when evaluating refinance offers.
What's the break-even point on a mortgage refinance?
The break-even point is when your monthly savings from the lower rate exceed the total closing costs you paid to refinance. Divide total closing costs by monthly savings. For example: $6,000 in closing costs ÷ $200 monthly savings = 30 months to break even. If you sell or refinance again before the break-even, you lose money. CalcDeck's refinance calculator automatically calculates your break-even timeline and total lifetime savings.
Should I refinance to a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but builds equity faster and saves enormous amounts in interest — often $100,000+ compared to a 30-year loan. A 30-year refinance lowers your monthly payment and frees up cash flow for other goals. Choose 15-year if you can comfortably afford the higher payment and want to be mortgage-free sooner. Choose 30-year if you prioritize monthly flexibility or want to invest the difference. CalcDeck's refinance calculator lets you compare both options side by side.
What is a cash-out refinance and when should I use one?
A cash-out refinance replaces your current mortgage with a larger loan and gives you the difference in cash. It makes sense for high-ROI home improvements, consolidating high-interest debt, or funding major expenses — but you're trading home equity for more debt. Rates on cash-out refinances are typically slightly higher than rate-and-term refinances. Only use cash-out refis for expenses that improve your financial position, not lifestyle spending. Use CalcDeck's refinance calculator to model the new loan costs.