Mortgage refinance calculator
Compare refinancing payments and the months needed to recover cash closing costs.
Formula
Monthly saving = old payment − new payment; break-even = ceil(cost/saving)
Current balance = 100,000 · Old annual rate (%) = 6 · Remaining old years = 20 · New annual rate (%) = 5 · New term (years) = 20 · Cash closing costs = 2,000
How to use
- Enter balance, old rate and remaining years.
- Set the new rate, term and cash closing costs.
- Compare payment savings and total remaining interest.
Examples
- 1200 at 0%: 1 year costs 100/month; 2 years costs 50.
- A 250 cost with 100 monthly savings takes 3 whole months.
Frequently asked questions
Are closing costs financed?
No. This model pays them upfront in cash.
Does a lower payment always save money?
No. Extending the term can increase total interest.
What is break-even?
Cash costs divided by positive monthly payment savings, rounded up, only while both loans remain active; no discounting.
Sources
Updated: