Learn how to use the refinance calculator to estimate your savings, compare scenarios, and decide if refinancing makes sense.
Should you refinance? Use our calculator to find out in 60 seconds.
Here's how to use it (and how to interpret the results).
Our calculator tells you:
Why this matters: You need to know if refinancing saves you money AND how long you need to stay in the home to benefit.
Use the refinance calculator →
Current Loan Balance
Example: You borrowed $400,000 five years ago. Today you owe $365,000. Enter $365,000.
Current Interest Rate
Remaining Loan Term
Broker's Tip: If you don't know your remaining term, use your mortgage statement. Look for "maturity date" and calculate how many years from now that is.
New Loan Amount
New Interest Rate
Not sure what rate you qualify for? Get a personalized quote →
New Loan Term
See our 15 vs 30-year comparison.
Estimated Closing Costs
Not sure what your closing costs are? Lenders are required to give you a Loan Estimate within 3 days of applying. Use that number.
If you haven't applied yet, estimate:
See our closing costs guide.
Broker's Tip: Don't guess on closing costs. Get a real Loan Estimate from your lender. Estimates that are too low will give you false break-even numbers.
The calculator shows you:
1. New Monthly Payment
2. Monthly Savings
3. Break-Even Point
If you're staying 19+ months, refinancing makes sense.
4. Total Interest Saved
5. Total Cost Over Time
Results:
Decision: REFINANCE. You'll recover costs in 1.5 years and save $280/month after that.
Results:
Decision: MAYBE. You'll barely recover costs. Only refinance if you're certain you'll stay 5+ years.
Results:
Decision: DON'T REFINANCE. You'll sell before recovering closing costs. You'll lose money.
Broker's Tip: I tell clients to aim for a break-even of 24 months or less. Anything longer is risky (you might move, rates might drop further, life happens).
How to use:
Use case: Debt consolidation, home improvements, buying investment property.
See our cash-out refinance guide.
Run the calculator twice:
Compare:
Example:
You save $122,000 in interest but pay $677/month more. Can you afford it?
Scenario A: Pay closing costs upfront
Scenario B: No-cost refinance (higher rate)
Run both through the calculator. Compare total cost over 3, 5, and 10 years.
See our no-closing-cost guide.
Mistake #1: Using the Original Loan Amount Instead of Current Balance
Your mortgage statement shows remaining balance, not original loan amount. Use the remaining balance.
Mistake #2: Forgetting to Include Cash-Out
If you're taking cash out, add it to your current balance. $350,000 balance + $50,000 cash = $400,000 new loan.
Mistake #3: Underestimating Closing Costs
"Free refinance" offers aren't free. Either you're paying a higher rate OR you're rolling costs into the loan. Account for this.
Mistake #4: Ignoring PMI
If your current loan has PMI and your new loan drops it (because you hit 20% equity), factor that into your monthly savings.
Example:
Mistake #5: Not Adjusting for Loan Term
Refinancing from a 25-year remaining term to a 30-year term lowers your payment but you're restarting the clock. You'll pay more interest long-term.
Your situation:
Refinance offer:
Calculator results:
Decision:
Total cost comparison (if you stay 5 years):
Q: Does the calculator include property taxes and insurance?
No. The calculator shows principal + interest only. Taxes and insurance stay the same whether you refinance or not.
Q: Can I use the calculator for ARM loans?
The calculator assumes fixed rates. For ARMs, you'd need to estimate where your rate will adjust to over time (complicated). Stick to fixed-rate scenarios.
Q: What if I don't know my closing costs?
Use $5,000 as a baseline for a $400,000 loan. Get a real Loan Estimate from your lender for accuracy.
Q: Can I calculate cash-out refinance?
Yes. Enter your current balance, then enter a higher new loan amount (current balance + cash you're taking).
Q: How accurate is the calculator?
Very accurate for principal + interest. But it doesn't include:
Ready to run the numbers? Use our calculator now:
Calculate your refinance savings →
Want a personalized analysis? I'll run the numbers for your specific situation:
I'm a California licensed mortgage broker with 15+ years experience (DRE #01212512).
Related guides:
Licensed mortgage broker with 15+ years of experience helping homeowners save money through refinancing. CA DRE #01212512.