Mortgage Refinance Calculator
Compare a new mortgage payment against your current one and find the break-even point.
Refinancing a mortgage swaps your current loan for a new one, usually to lower the rate or shorten the term. Enter your remaining balance, the new rate, and the new term to see the payment. On a $300,000 balance at 6% over 30 years it is about $1,799 in principal and interest. Compare that to your current payment and divide closing costs by the monthly savings to find break-even.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Estimated monthly payment
$1,798.65
Principal vs. interest paid per year
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,684 | $17,900 | $296,316 |
| 2 | $3,911 | $17,673 | $292,405 |
| 3 | $4,152 | $17,431 | $288,252 |
| 4 | $4,409 | $17,175 | $283,844 |
| 5 | $4,681 | $16,903 | $279,163 |
| 6 | $4,969 | $16,615 | $274,194 |
| 7 | $5,276 | $16,308 | $268,918 |
| 8 | $5,601 | $15,983 | $263,317 |
| 9 | $5,947 | $15,637 | $257,371 |
| 10 | $6,313 | $15,271 | $251,057 |
| 11 | $6,703 | $14,881 | $244,354 |
| 12 | $7,116 | $14,468 | $237,238 |
| 13 | $7,555 | $14,029 | $229,683 |
| 14 | $8,021 | $13,563 | $221,662 |
| 15 | $8,516 | $13,068 | $213,147 |
| 16 | $9,041 | $12,543 | $204,106 |
| 17 | $9,599 | $11,985 | $194,507 |
| 18 | $10,191 | $11,393 | $184,316 |
| 19 | $10,819 | $10,765 | $173,497 |
| 20 | $11,486 | $10,097 | $162,011 |
| 21 | $12,195 | $9,389 | $149,816 |
| 22 | $12,947 | $8,637 | $136,869 |
| 23 | $13,746 | $7,838 | $123,123 |
| 24 | $14,593 | $6,990 | $108,530 |
| 25 | $15,494 | $6,090 | $93,036 |
| 26 | $16,449 | $5,135 | $76,587 |
| 27 | $17,464 | $4,120 | $59,124 |
| 28 | $18,541 | $3,043 | $40,583 |
| 29 | $19,684 | $1,900 | $20,898 |
| 30 | $20,898 | $685 | $0 |
About the Mortgage Refinance Calculator
Refinancing makes sense when a new loan saves you more than it costs to get it. This calculator starts from your remaining balance rather than the original price, applies the new rate and term, and returns the principal and interest payment so you can set it beside what you pay now. The figure that decides most refinances is the break-even point. Closing costs typically run 2% to 5% of the balance, so divide those costs by your monthly savings to find how many months you must keep the loan before the refinance turns a profit. If you are likely to move or refinance again before then, the math does not favor it. Term choice matters as much as rate. Refinancing 23 years into a 30-year loan back into a fresh 30-year term lowers the payment but can add years of interest, while refinancing into a 15-year term often trades a higher payment for a large interest saving. Look at lifetime interest, not just the monthly number.
Frequently asked questions
When does refinancing a mortgage make sense?+
When you will stay in the home past the break-even point, where accumulated monthly savings overtake the closing costs. A rate reduction of around 0.5% to 1% is a common threshold, though shortening the term or dropping mortgage insurance can justify it too.
How do I calculate my refinance break-even point?+
Divide your total closing costs by the amount you save each month. The result is the number of months it takes for the refinance to pay for itself. Plan to keep the loan longer than that for the move to be worthwhile.
Will refinancing extend how long I pay my mortgage?+
It can, if you reset to a new 30-year term. That lowers the payment but stretches out interest. Choosing a term close to the years remaining on your current loan keeps you from paying interest longer than necessary.
Can I refinance with little or no equity?+
It is harder, since lenders prefer at least 20% equity to avoid mortgage insurance and offer the best rates. Some government-backed streamline programs allow refinancing with low equity, but options narrow and costs rise as equity shrinks.