Compare your current mortgage to a new refinance offer. See your monthly savings, total interest saved, and exactly when you'll break even on closing costs.
Months until savings exceed closing costs (break-even point)
Find out if refinancing your mortgage will save you money and how long it takes to break even on closing costs.
Input your current loan balance, interest rate, and remaining term. This establishes your baseline — what you're paying now.
Input the new interest rate, loan term, and any closing costs or fees. These determine what your payment and total cost would be after refinancing.
If you're doing a cash-out refinance, enter how much equity you'd like to withdraw. This increases your new loan balance but gives you funds for other needs.
See your current vs. new monthly payment, total interest savings, and the break-even point — the number of months until your savings exceed the closing costs.
Refinancing makes sense when the new rate is low enough that your monthly savings recover the closing costs before you plan to sell or pay off the home.
A general rule of thumb: refinancing is worth it if you can reduce your rate by at least 0.5%–1% and your break-even point is under 3 years.
If the new rate is 1%+ lower, refinancing is almost always worth exploring — even with closing costs.
Divide closing costs by your monthly savings. If you plan to stay longer than that, refinancing saves money.
Refinancing to a 15-year can save tens of thousands in interest, even if the monthly payment is higher.
You can tap home equity by borrowing more than you owe. Use this calculator for rate-and-term refis only.