Remaining and new terms
Compare both options from the same starting date. A longer new term can lower the payment without reducing total cost. Review lifetime savings and both balances at the holding horizon.
Loans
Mortgage Refinance Calculator
Compare your existing mortgage with a new offer: payments, interest, refinancing costs and savings over your planned holding period.
Lifetime net savings
$67,005.41
Current payment including costs
$2,091.10
New payment including costs
$1,791.08
Monthly payment savings
$300.02
Net savings at holding horizon
$19,566.32
First positive cost-savings month
1 yr 1 mo
Current loan total interest
$251,864.04
New loan total interest
$179,858.64
New principal
$250,000.00
Fees paid upfront
$5,000.00
Current balance at holding horizon
$218,813.96
New balance at holding horizon
$212,249.00
Cash-out received
$0.00
New loan remaining balance
Month 1: $249,458.92Month 1 · $249,458.92
Month 11: $243,897.10Month 11 · $243,897.10
Month 21: $238,050.84Month 21 · $238,050.84
Month 31: $231,905.60Month 31 · $231,905.60
Month 41: $225,446.09Month 41 · $225,446.09
Month 51: $218,656.24Month 51 · $218,656.24
Month 61: $211,519.16Month 61 · $211,519.16
Month 71: $204,017.09Month 71 · $204,017.09
Month 81: $196,131.36Month 81 · $196,131.36
Month 91: $187,842.36Month 91 · $187,842.36
Month 101: $179,129.45Month 101 · $179,129.45
Month 111: $169,970.97Month 111 · $169,970.97
Month 121: $160,344.11Month 121 · $160,344.11
Month 131: $150,224.94Month 131 · $150,224.94
Month 141: $139,588.28Month 141 · $139,588.28
Month 151: $128,407.65Month 151 · $128,407.65
Month 161: $116,655.25Month 161 · $116,655.25
Month 171: $104,301.82Month 171 · $104,301.82
Month 181: $91,316.64Month 181 · $91,316.64
Month 191: $77,667.40Month 191 · $77,667.40
Month 201: $63,320.13Month 201 · $63,320.13
Month 211: $48,239.14Month 211 · $48,239.14
Month 221: $32,386.90Month 221 · $32,386.90
Month 231: $15,723.99Month 231 · $15,723.99
Month 240: $0.00Month 240 · $0.00
Month 1Month 240
Hover, tap or focus a column to see its exact value.
Repayment comparison
Detailed values use the same assumptions as the summary above.
| Month | Current payment | New payment | Current balance | New balance | Net cost savings |
|---|---|---|---|---|---|
| 1 | $2,091.10 | $1,791.08 | $249,575.57 | $249,458.92 | -$4,583.33 |
| 2 | $2,091.10 | $1,791.08 | $249,148.30 | $248,915.14 | -$4,166.79 |
| 3 | $2,091.10 | $1,791.08 | $248,718.19 | $248,368.64 | -$3,750.38 |
| 4 | $2,091.10 | $1,791.08 | $248,285.21 | $247,819.40 | -$3,334.10 |
| 5 | $2,091.10 | $1,791.08 | $247,849.35 | $247,267.42 | -$2,917.96 |
| 6 | $2,091.10 | $1,791.08 | $247,410.58 | $246,712.68 | -$2,501.97 |
| 7 | $2,091.10 | $1,791.08 | $246,968.88 | $246,155.17 | -$2,086.13 |
| 8 | $2,091.10 | $1,791.08 | $246,524.24 | $245,594.87 | -$1,670.45 |
| 9 | $2,091.10 | $1,791.08 | $246,076.63 | $245,031.76 | -$1,254.93 |
| 10 | $2,091.10 | $1,791.08 | $245,626.04 | $244,465.84 | -$839.57 |
| 11 | $2,091.10 | $1,791.08 | $245,172.45 | $243,897.10 | -$424.40 |
| 12 | $2,091.10 | $1,791.08 | $244,715.83 | $243,325.50 | -$9.40 |
Break-even is the first month when cumulative interest and recurring-cost savings exceed refinancing fees. Rate changes, extra payments, taxes and approval criteria are outside this model.
Calculation method
Payments and savings after costs
P is principal, r is the nominal annual rate divided by 12 and 100, and n is the number of months. At a zero rate, payment is P / n. Financed fees increase the new balance and its interest; the fee itself is deducted once.
Detailed guide
How to compare a mortgage refinance
Start with your outstanding balance, existing rate and remaining monthly payments. Then enter the new offer’s rate, term and fees. Both schedules start from the current balance, so interest you already paid is excluded from future savings.
A cash-out refinance increases the new principal. Cash received is shown separately and is not counted as savings. Check the remaining new balance alongside the savings at your planned sale or refinancing date.
Payments and savings after costs
A = P × r / (1 − (1 + r)⁻ⁿ); savings = old interest − new interest + recurring-cost savings − fees
P is principal, r is the nominal annual rate divided by 12 and 100, and n is the number of months. At a zero rate, payment is P / n. Financed fees increase the new balance and its interest; the fee itself is deducted once.
At the holding horizon, the comparison uses accumulated interest, recurring costs and the one-time fee. Principal repayment reduces a liability rather than representing interest cost. Both remaining balances are shown so a lower payment does not hide slower repayment.
For example, if future interest falls by $4,000 and refinancing costs $1,500 with unchanged recurring costs, lifetime net savings are $2,500. Savings at an earlier holding date may be lower or negative.
What to check in the offer
Refinancing costs
Include fees and transaction costs. Paying upfront and adding fees to principal produce different payments.
First break-even month
Break-even follows cumulative interest and recurring-cost savings. Monthly payment savings are shown separately. An early advantage can shrink after the old loan ends, so review the full schedule.
Refinancing questions
Does a lower payment always save money?
No. A longer term can reduce payments while increasing lifetime interest. Compare net savings after fees and remaining balances.
How do I include financed fees?
Enter the total fee and select adding it to the new loan. The calculator increases principal and includes the resulting interest.
Why is break-even different from fees divided by payment savings?
Payments include principal repayment. This calculation compares interest and recurring costs so that slower repayment is not treated as savings.
Is cash-out counted as savings?
No. Cash-out increases principal and is displayed separately. Interest on that additional principal is included in costs.
Data sources
These sources explain the concepts used in the calculation. Check the applicable contract or issuer documents for your actual parameters.
Updated: October 1, 2026
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