Refinance Calculator — Should You Refinance? 2026
Compare your current mortgage with a new one in seconds: see your new monthly payment, how much interest you can save, and exactly how many months it takes for the savings to cover the closing costs.
Results
| Current Loan | New Loan | |
|---|---|---|
| Interest Rate | — | — |
| Term | — | — |
| Monthly Payment | — | — |
| Total Interest | — | — |
Monthly Payment: Current vs. New
How to Use the Refinance Calculator
Enter the balance you still owe, your current interest rate and how many years are left on the loan. Then add the rate and term of the refinance you are considering, plus the closing costs. The calculator compares both loans on the same remaining balance and shows the new payment, the monthly savings, and how much total interest you can save over the life of the new loan.
Understanding Your Break-Even Point
The break-even point is the number of months it takes for your monthly savings to cover the closing costs. Divide the closing costs by the monthly savings — for example, $6,000 in costs divided by $200 in monthly savings equals 30 months. If you plan to stay in the home longer than that, the refinance is usually worth it.
When Does Refinancing Make Sense?
Refinancing makes the most sense when you can lock in a significantly lower rate, when your credit has improved since the original loan, or when you want to switch from an adjustable-rate to a fixed-rate mortgage for stability. It also lets you tap home equity for renovations or debt consolidation, though a cash-out refinance increases the balance you owe.
Frequently Asked Questions
Is refinancing worth it?
Refinancing is worth it when the monthly savings you get from a lower rate eventually cover the closing costs. Divide the total closing costs by the monthly savings to find your break-even point in months. If you plan to keep the home past that point, the refinance usually pays for itself.
How much does refinancing cost?
A typical refinance costs 2% to 5% of the loan balance, including the appraisal, origination fee, title insurance and other closing costs. Some lenders offer no-closing-cost refinances, but they usually build the costs into a slightly higher rate.
Should you refinance to a 15-year mortgage?
A 15-year refinance raises your monthly payment but can save a large amount of interest because you pay the loan off twice as fast. Use the calculator to compare the higher payment and shorter term against the total interest saved before deciding.