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Refinance Calculator

Compare your current mortgage payment with a new refinance rate and term, including closing costs and the break-even point.

$

Current loan

% p.a.
years

New loan

% p.a.
years
$

New monthly payment

$1,703.37

Old: $2,236.72/mo

Monthly savings

$533.35

Compared with your current loan

Total savings

$-81,399

Over the life of the new loan

Break-even

10 months

$5,000 closing costs recouped

Estimate for a US mortgage. Extending the term can lower the payment but add interest overall — check the total-savings card before deciding.

How it works

Savings = old payment − new payment. Break-even = closing costs ÷ monthly savings. Interest saved = old total interest − new total interest.

Example: refinancing $250,000 from 7% to 5.5% over 30 years → saves ~$244/month, break-even ≈ 17 months at $4,200 closing costs.

Refinance Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Compare your current mortgage payment with a new refinance rate and term, including closing costs and the break-even point. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.

Popular uses: refinance calculator · mortgage refinance calculator · refinance break even calculator

Last updated: August 2026

How We Calculate

This calculator uses standard mathematical formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server. The formulas used are industry-standard and match those used by banks, financial institutions and health organizations.

For financial calculators, we use RBI-approved formulas and regularly updated bank rates. For health calculators, we use WHO-recommended formulas and medical standards. All rates and standards are sourced from official government and regulatory websites.

Frequently Asked Questions

How do I know if refinancing is worth it?

Compare your current monthly payment and total interest against the new loan's. This calculator shows the monthly savings, the break-even point and total interest saved, so you can decide if the closing costs are justified.

What is the break-even point in refinancing?

It is the number of months for your monthly savings to cover the refinance closing costs. If you plan to stay in the home past that point, the refinance generally pays off.

Should I refinance to a lower rate or a shorter term?

A lower rate cuts your payment; a shorter term (for example 30 to 15 years) builds equity faster and saves far more interest, though your monthly payment may rise. Enter both scenarios to compare.

Does refinancing affect my credit score?

Lenders run a hard credit inquiry and your old loan closes while a new one opens, which can cause a small, temporary score dip. Most people's scores recover within a few months of on-time payments.

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