Mortgage Payoff Calculator
See how extra mortgage payments can reduce interest, shorten payoff time, and change your amortization schedule.
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Mortgage Refinance Calculator
Compare your current mortgage with a refinance offer to estimate monthly payment change, payoff timing, closing cost break-even, and total cost difference.
Current mortgage
Refinance offer
Loan comparison
| Current loan | New loan | Difference | |
|---|---|---|---|
| Loan amount | $0 | $0 | $0 |
| Loan term | 0 months | 0 months | Same |
| Interest rate | 0.000% | 0.000% | 0.000 pts |
| Monthly payment | $0/mo | $0/mo | $0/mo |
| Total interest | $0 | $0 | $0 |
| Total payments | $0 | $0 | $0 |
| Closing costs | $0 | $0 | $0 |
Total difference over time
Interpret your refinance estimate
The refinance result compares your current principal-and-interest path with the proposed new loan. A lower monthly payment can help cash flow, but the total cost matters if the new term is longer.
Inputs that matter most
- New rate: the main lever for lowering payment and interest.
- New term: can lower payment while increasing time in debt.
- Closing costs: determine how long savings need to recover the refinance cost.
- Cost handling: rolling costs into the loan can raise payment and interest.
Common mistakes
- Treating a lower payment as automatic savings.
- Ignoring how long you plan to keep the loan or home.
- Forgetting that upfront costs reduce early savings.
- Comparing refinance offers without checking points and lender fees.
When this estimate can be misleading
This comparison does not include escrow refunds, tax effects, credit-score changes, prepayment penalties, property value changes, or lender-specific closing disclosures.
Scenarios to try
- Try the same term length as your current remaining term.
- Compare paying closing costs upfront against rolling them into the loan.
- Raise the new rate by 0.25% to test a less favorable quote.
- Try a shorter term if your priority is total interest instead of monthly cash flow.
Next-step utilities
How to use this mortgage refinance calculator
Compare your current mortgage with a refinance offer to estimate payment change, break-even timing, and total cost difference.
- Enter your current balance, interest rate, and remaining term.
- Add the refinance rate, new term, and closing costs.
- Choose whether closing costs are paid upfront or rolled into the new loan.
- Review monthly payment change, break-even timing, and the total difference chart.
Mortgage Refinance Calculator features
- Compare a current mortgage against a refinance offer.
- Enter current balance, current rate, and remaining term.
- Model new refinance rate and new loan term.
- Include closing costs in the refinance comparison.
- Choose whether closing costs are paid upfront or rolled into the new loan.
- Estimate monthly payment change and payoff timing change.
- Review break-even timing when costs are paid upfront.
- Chart total cost difference over time.
- Compare refinance savings before changing loans.
When refinancing can make sense
A refinance can lower your monthly payment, reduce interest, or both.
The right choice depends on the new rate, new term, closing costs, and whether you keep the loan long enough to pass the break-even point.
A lower payment is not automatically better if it comes from restarting a longer loan term and increasing total interest.
How the refinance comparison works
The calculator compares principal and interest on your current loan path with the proposed refinance path.
The current payment is estimated from remaining balance, current rate, and time left. The refinance payment is estimated from the new balance, rate, and term.
If closing costs are paid upfront, they are subtracted from savings. If costs are rolled into the new loan, they increase the new loan balance. Current mortgage payments stop after the current loan would be paid off.
M = B \cdot \frac{r(1+r)^n}{(1+r)^n - 1}
B is the loan balance, r is the monthly interest rate, and n is the number of monthly payments remaining or selected for the new loan.
B_{new} = B + C_f
C_f is the portion of closing costs rolled into the new loan. If closing costs are paid upfront, C_f is 0.
S_m = M_{current} - M_{new}
A positive S_m means the refinance has a lower monthly principal and interest payment.
D_t = -C_u + \sum_{i=1}^{t}(P_{current,i} - P_{new,i})
C_u is upfront closing cost. P_current,i is 0 after the current loan would be paid off; P_new,i is 0 after the refinance loan would be paid off.
\operatorname{BreakEven} = \min\{t : D_t \ge 0\}
The break-even point is the first month when cumulative refinance savings have recovered any upfront closing costs.
The comparison does not include taxes, insurance, credit score changes, escrow refunds, prepayment penalties, or tax effects.
Mortgage refinance FAQ
What is a refinance break-even point?
It is the amount of time needed for a lower monthly payment to make up for the closing costs paid to refinance.
Is a lower payment always better?
Not always. A lower payment can come from restarting a longer loan term, which may increase total interest if you keep the loan for a long time.
Should closing costs be paid upfront or rolled in?
Paying upfront keeps the new loan balance lower. Rolling costs into the loan reduces cash needed at closing but usually increases the payment and total interest.
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