Refinance Calculator
Current vs. Refinance Terms
Refinance Summary
| Current Monthly Payment | — |
|---|---|
| New Monthly Payment | — |
| Monthly Savings | — |
| Break-Even Period | — |
| Total Remaining Current Interest | — |
| Total Refinance Interest | — |
| Net Lifetime Savings | — |
Visual Breakdown (New Loan)
Enter values and press Calculate to see the new loan breakdown pie chart and balance path line chart.
How to Evaluate a Mortgage Refinance
Refinancing involves paying off your current mortgage with a new loan under different interest rate and term parameters. To evaluate if refinancing makes financial sense, you must analyze both the monthly savings and the long-term cost.
The Refinance Formulas
These metrics are calculated as follows:
- **Monthly Savings:** ***Current Monthly Payment - New Monthly Payment***
- **Break-Even Period (months):** ***Refinancing Fees / Monthly Savings***
- **Net Lifetime Savings:** ***(Current Payment × Remaining Months) - (New Payment × New Months + Refinancing Fees)***
Understanding the Break-Even Point
The break-even point is the number of months required for your monthly payment savings to offset the closing costs and upfront fees of the new loan. If you plan to sell the home or pay off the mortgage before reaching the break-even point, you will not recover the refinancing costs.