Calculate your break-even point and see if refinancing saves you money
The numbers below are an example. Replace them with yours — the result updates as you type, no button to press.
How many years the loan was taken for originally — not how many are left. It is on the first page of your contract. Together with the years remaining it gives your current balance.
Leave these at zero if they do not apply.
Everything the new loan costs up front: valuation, a new policy, notary, bank fee, registration. Add them into one figure. This is what decides whether refinancing pays for itself — the break-even line says in how many months.
A line per year — open one to see its twelve months.
| Period | Payment | Towards the debt | Interest | Extra | Insurance | Left to pay |
|---|
The result is an estimate from the numbers you entered. It is not financial, investment or tax advice and not an offer of credit — the actual terms are set by your bank. Check important decisions with a qualified specialist. Full disclaimer
Enter your Current Loan Balance, Interest Rate, and remaining term.
Enter the New Interest Rate and New Term.
Enter any Refinancing Costs.
Click Calculate to see monthly savings and break-even timeline.
Refinancing makes sense if you can lower your rate by at least 1% and plan to stay long enough to recoup costs.
Refinancing means replacing your current mortgage with a new one. People usually refinance to lower their interest rate, shrink their monthly payment, or change the loan term (e.g., switching from a 30-year to a 15-year mortgage to pay off the house faster).
Refinancing isn't free. You have to pay closing costs, which typically range from 2% to 5% of the loan amount. The \"break-even point\" is how many months it takes for your monthly savings to cover the upfront closing costs. If your break-even point is 36 months, but you plan to sell the house in 24 months, refinancing will actually lose you money. This calculator figures out that exact break-even timeline for you.
the usual case. The rate has to fall by enough to cover the costs — and the break-even line says by when.
the term is short, so closing costs weigh far more here than on a mortgage.
add up what you owe and put it in as one balance; the new payment replaces all of them.
the payment falls and the interest grows. Both numbers are on screen — decide with them, not with one of them.
Refinancing is the replacement of a current loan with a new one with more favorable terms (usually a lower rate). The calculator compares both options and shows the financial result.
The key metric is the break-even point: how many months will it take for the monthly savings to cover the cost of refinancing. If you plan to stay in your home longer than that, refinancing is beneficial.
The calculator takes into account all costs: real estate appraisal, applying for a new loan, insurance and other fees. This gives a realistic picture of the benefits.
Calculations are performed in the browser. Financial data does not leave the device.
B = P · (1 + i)k − M · ((1 + i)k − 1) / i What is left after k payments: P — the original amount, i — the monthly rate, M — the payment.
M = P · i / (1 − (1 + i)−n) The same payment every month, for the old loan and the new one alike.
I = Σ Bj · i, j = k … n Summed month by month from the real schedule, not from payment × months: the last payment is almost always smaller.
T = C / (Mold − Mnew) How many months the closing costs C take to pay for themselves out of the monthly saving.
Refinance when rates drop 0.5-1% or more below your current rate
Switch from 30-year to 15-year to pay off faster and save on total interest
Access home equity for renovations, debt consolidation, or investments
Switch from an adjustable rate to a fixed rate for payment stability
assessing total savings over the entire period
Roll high-interest debt into a lower mortgage rate
A: When the new rate is at least 0.5-1% lower than the current rate, you plan to stay in the home longer than the break-even point and refinancing costs are reasonable.
A: Typical expenses: real estate valuation, insurance, bank commission, notary fees. This is usually 1-3% of the new loan amount.
A: Yes, in most cases you can refinance at any time. However, check to see if there are any penalties for early repayment of your current loan.
Try the Mortgage Calculator for basic calculations, the Early Repayment Calculator for planning extra payments, and the Loan Calculator for personal loans.