Refinance Savings Calculator

Best for: Refinance

Compare your current loan against a refinance to see monthly savings and break-even point.

What does this calculator do?

This calculator compares your current mortgage payment against a new refinanced loan, showing the monthly savings, break-even point in months, and cash-out amount if applicable.

Who should use it?

Homeowners considering refinancing to lower their payment, take cash out, or shorten their loan term.

What numbers do I need?

Current loan balance, current interest rate, current monthly payment, new interest rate, new loan term, closing costs, and cash-out amount.

What should I watch out for?

A lower payment does not always mean you save money long-term — extending the term can increase total interest paid. Break-even analysis is critical. Cash-out refinances increase your loan balance. Always compare total cost, not just monthly payment.

Current Loan Balance

Current Interest Rate

Current Monthly Payment

New Interest Rate

New Loan Term

years

Closing Costs

Cash Out Amount

How It Works

1Enter your current loan balance, interest rate, and monthly payment.
2Input the new interest rate and loan term you are considering.
3Add estimated closing costs and any cash-out amount you want to take.
4The calculator computes your new payment, monthly savings, and break-even point in months.

Who This Calculator Is For

This calculator is for homeowners who want to see if refinancing makes financial sense. It is especially useful for comparing rate-and-term refinances and cash-out refinances, and understanding how long it takes to recoup closing costs.

Frequently Asked Questions

How do I calculate refinance savings?

Refinance savings = current monthly payment minus new monthly payment. The break-even point is closing costs divided by monthly savings. If you plan to stay past the break-even point, refinancing may make sense.

Is a HELOC better than a cash-out refinance?

It depends. A HELOC keeps your existing first mortgage rate but has a variable rate on the line of credit. A cash-out refinance replaces your entire mortgage at a new rate. Compare both using the HELOC vs Cash-Out calculator.

What is a break-even point in refinancing?

The break-even point is how many months it takes for your monthly savings to cover the closing costs. If you plan to sell or move before the break-even, refinancing may not be worth it.

Does cash-out refinancing increase my loan balance?

Yes. Cash-out refinancing adds the cash-out amount to your new loan balance, which increases your total debt and may increase your monthly payment even with a lower rate.

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Calculator results are estimates for educational and informational purposes only. They are not financial, legal, tax, or lending advice and do not represent a loan approval or commitment to lend. Actual terms vary based on lender, borrower profile, documentation, market conditions, and underwriting.