Enter your current loan balance, interest rate, and remaining term. Then enter the proposed new rate, new loan term, and estimated closing costs. The calculator instantly shows your monthly payment change and how many months until refinancing breaks even.
Refinancing costs money upfront (closing costs typically run 2–5% of the loan balance) but saves money each month. The break-even point is when cumulative monthly savings equal those upfront costs. If you plan to stay in the home past the break-even date, refinancing usually makes financial sense. If you might move before then, the costs may outweigh the savings. A rate drop of even 0.5–1% can be worth refinancing if you have a large balance and intend to stay long-term.