Mortgage refinance calculator
This mortgage refinance calculator compares your current mortgage with a new one, including closing costs, and shows the break-even month.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,749.80 | $19,893.80 | $316,250.20 |
| 2 | $3,991.00 | $19,652.60 | $312,259.20 |
| 3 | $4,247.71 | $19,395.89 | $308,011.49 |
| 4 | $4,520.93 | $19,122.67 | $303,490.56 |
| 5 | $4,811.72 | $18,831.88 | $298,678.84 |
| 6 | $5,121.22 | $18,522.38 | $293,557.62 |
| 7 | $5,450.63 | $18,192.97 | $288,106.99 |
| 8 | $5,801.23 | $17,842.37 | $282,305.76 |
| 9 | $6,174.37 | $17,469.23 | $276,131.39 |
| 10 | $6,571.52 | $17,072.08 | $269,559.87 |
| 11 | $6,994.21 | $16,649.39 | $262,565.66 |
| 12 | $7,444.09 | $16,199.51 | $255,121.57 |
| 13 | $7,922.90 | $15,720.70 | $247,198.67 |
| 14 | $8,432.50 | $15,211.10 | $238,766.17 |
| 15 | $8,974.92 | $14,668.68 | $229,791.25 |
| 16 | $9,552.19 | $14,091.41 | $220,239.06 |
| 17 | $10,166.60 | $13,477.00 | $210,072.46 |
| 18 | $10,820.54 | $12,823.06 | $199,251.92 |
| 19 | $11,516.54 | $12,127.06 | $187,735.38 |
| 20 | $12,257.31 | $11,386.29 | $175,478.07 |
| 21 | $13,045.71 | $10,597.89 | $162,432.36 |
| 22 | $13,884.83 | $9,758.77 | $148,547.53 |
| 23 | $14,777.93 | $8,865.67 | $133,769.60 |
| 24 | $15,728.48 | $7,915.12 | $118,041.12 |
| 25 | $16,740.16 | $6,903.44 | $101,300.96 |
| 26 | $17,816.92 | $5,826.68 | $83,484.04 |
| 27 | $18,962.92 | $4,680.68 | $64,521.12 |
| 28 | $20,182.66 | $3,460.94 | $44,338.46 |
| 29 | $21,480.86 | $2,162.74 | $22,857.60 |
| 30 | $22,857.60 | $781.05 | $0.00 |
The refinance break-even test
Divide the closing costs by the monthly savings to find the break-even month. If you will sell or refinance again before then, refinancing loses money. Also compare total interest: resetting to a new 30-year term lowers the payment but can raise the lifetime cost unless the rate drop is large.
Rate-and-term vs cash-out
A rate-and-term refinance changes the rate or term only. A cash-out refinance borrows more against your equity and usually carries a higher rate. This calculator models the rate-and-term case. If you roll closing costs into the loan, increase the balance by that amount and set closing costs to zero.
When refinancing makes sense
Refinancing pays off when the monthly saving recovers the closing costs before you sell or pay off the loan. Divide the closing costs by the monthly saving to get the break-even month. Also check whether you are restarting the clock: a new 30-year loan after 5 years can lower the payment but raise the total interest.
Frequently asked questions
When does refinancing a mortgage make sense?
When the monthly savings recover the closing costs well before you expect to move, and the new term fits your goals.
What are typical closing costs?
Often 2% to 5% of the loan, covering lender fees, appraisal, title and recording. Ask for a loan estimate to see the exact figures.
What is the break-even point on a refinance?
It is the number of months of payment savings needed to recover the closing costs. If you will move or pay off the loan before then, refinancing loses money.
Should I refinance into a longer term?
It lowers the payment, but you can pay more total interest. Compare the lifetime savings, not just the monthly payment.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.