What is the Refinance Calculator?
The Refinance Calculator compares principal-and-interest payments on the current remaining balance with a new loan on that same balance. It also estimates how many months of positive payment savings would be required to recover the closing costs you enter.
How does the Refinance Calculator work?
Both payments use the standard fixed-rate amortization formula. The calculator then compares monthly payments, total remaining interest under each schedule, and closing costs. CFPB recommends weighing refinance costs against the benefits and how long you expect to keep the loan.
What formula or rule does it use?
Monthly P&I uses the fixed-payment amortization formula; break-even months = refinance costs ÷ positive monthly payment savings The dynamic “How this answer was calculated” panel substitutes the values you enter into the rule after a valid calculation.
How should you use this calculator?
Enter the current unpaid balance, current rate and remaining term, then the proposed rate, term and refinance costs. Review the original loan with the Mortgage Calculator, your property leverage with the Home Equity Calculator, purchase costs with the Closing Cost Calculator, and affordability with the Home Affordability Calculator.
How should you understand the result?
The headline shows estimated monthly principal-and-interest savings. A positive number lowers the P&I payment; a negative number means the proposed payment is higher. Break-even is shown only when monthly savings are positive.
What are the limitations?
Actual refinance decisions can involve taxes, insurance, mortgage insurance, escrow, points, lender credits, cash-out, prepayment penalties, rate locks, and different loan balances. This calculator does not determine eligibility or recommend a refinance.
Who can use this calculator?
Useful for homeowners comparing a quote with their existing fixed-rate mortgage and testing different rate/term/cost combinations before speaking with lenders.
Frequently asked questions about Refinance
Sources and methodology
Methodology, terminology and consumer guidance are grounded in the following U.S. government or housing-finance references where applicable.