Calculate monthly savings, break-even point, and lifetime interest if you refinance your mortgage.
Includes closing costs in the break-even calculation, the way it should be done.
Refinancing only makes sense if you'll stay in the home long enough to recover the closing costs. This calculator gives you the break-even month plainly — the point where cumulative savings catch up to what you paid to refinance — and the lifetime interest difference between keeping your current loan and replacing it.
Monthly savings = Current monthly payment − New monthly payment. Break-even months = Closing costs ÷ Monthly savings. Net lifetime savings = (Current lifetime interest − New lifetime interest) − Closing costs.
Refinancing a $300,000 balance from 7.25% with 25 years left to 6.00% over a new 30-year term drops the payment from about $2,170 to $1,799 — a $371 monthly savings. With $6,000 in closing costs, you break even in about 16 months. If you stay in the home five more years, you save roughly $16,000 net.
Estimate your monthly mortgage payment including principal, interest, property taxes, insurance, HOA, and PMI.
See how much interest and time you save by adding extra principal to your monthly mortgage payment.
Estimate the upfront closing costs and total cash to close on a home — lender fees, title and escrow, prepaid taxes and insurance, recording, and custom line items.
Compare monthly payments and lifetime interest between a 15-year and 30-year mortgage at real rates.
When the rate drop is meaningful (often 0.5–1% or more), closing costs are reasonable, and you plan to stay past the break-even month.
It saves cash today but increases the balance and total interest. The break-even still applies — just verify net savings stay positive.
Yes, unless you specifically request the same remaining term. Match terms when possible to avoid stretching interest over more years.
This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.
Last updated June 2026 · Prepared by the mCalculator Editorial Team