Mortgage Refinance Calculator
Calculate monthly savings, break-even month, and total savings from refinancing your mortgage.
Refinance Analysis
Refinance savings compare your current payment to a new lower-rate payment:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where P = principal, r = monthly rate, n = remaining months (typically 360 for 30-year).
Monthly Savings = Current Payment - New Payment
Break-Even Month = Closing Costs / Monthly Savings
Total Savings = (Monthly Savings × Remaining Months) - Closing Costs
When refinancing makes sense:
- Rate reduction of at least 0.5–1%
- You plan to stay in the home past the break-even point
- Break-even period is under 3–5 years
Typical closing costs: 2–5% of loan amount ($2,000–$5,000 on average)
Note: This calculator assumes a 30-year fixed-rate loan for simplicity.