Refinance Calculator
Determine if refinancing makes sense for your mortgage
Current Mortgage
New Mortgage
Typically 2-5% of loan amount
Refinance Analysis
Current Monthly Payment
$1,697.54
Based on current rate and term
New Monthly Payment
$1,497.54
Based on new rate and term
Monthly Savings
$200.00
Break-Even Period
24 months
Total Interest Savings
$72,000
Comparison Summary
| Metric | Current Mortgage | New Mortgage | Difference |
|---|---|---|---|
| Monthly Payment | $1,697.54 | $1,497.54 | -$200.00 |
| Total Interest | $371,114 | $299,114 | -$72,000 |
| Total Payments | $611,114 | $543,114 | -$68,000 |
| Closing Costs | - | $4,800 | +$4,800 |
How This Calculator Works
Monthly Payment Calculation
This calculator uses the standard US mortgage amortization formula to compute monthly payments for both your current and potential new mortgage:
- M = Monthly payment
- P = Principal loan balance
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of payments (loan term in years × 12)
Break-Even Analysis
The break-even period is calculated by dividing the total closing costs by the monthly savings from refinancing:
This represents the number of months it will take to recoup the upfront costs of refinancing through monthly payment savings.
Total Interest Savings
Total interest savings are calculated by comparing the total interest that would be paid over the remaining term of the current mortgage versus the total interest that would be paid over the term of the new mortgage.
Net Savings Calculation
The net savings figure accounts for the closing costs associated with refinancing. It is calculated as:
Closing Costs
Closing costs typically range from 2% to 5% of the loan amount and may include application fees, appraisal fees, title insurance, origination fees, and other charges. These costs are paid upfront when refinancing.