Refinance Calculator
Compare your current mortgage to a refinance offer and find out how many months it takes to break even on closing costs.
Monthly savings
$247.14
What Your Result Means
Monthly savings shows how much lower your payment would be after refinancing. The break-even point tells you how many months it takes for those monthly savings to cover your closing costs - after that point, refinancing is saving you real money.
How It Is Calculated
Calqora calculates your current monthly payment based on your remaining balance, rate, and years left, then calculates a new payment using your refinance rate and term. Break-even is closing costs divided by monthly savings.
Worked Example
Refinancing a $280,000 balance from 7% (27 years left) to 6% (30-year term) with $4,000 in closing costs might save around $150/month, breaking even in about 27 months.
Important Assumptions
- Does not account for extending your loan term potentially increasing total interest paid over the life of the loan.
- Closing costs vary by lender - get a Loan Estimate for an accurate figure.
Frequently Asked Questions
- Is refinancing always worth it if I save money monthly?
- Not necessarily - if you extend your loan term, you may pay more interest overall even with a lower rate. Check the lifetime interest savings figure alongside your break-even point.
- How long should I plan to stay in the home?
- If you plan to move before reaching your break-even point, refinancing likely won't save you money in that specific home.
Related Calculators
Methodology
This calculator compares two standard loan amortization calculations. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.