Refinance & Rate Simulator

See if refinancing your mortgage saves money. Compare payments, breakeven timeline, and total interest — free, interactive, no login required.

Loan Details

Results

$376/mo
You save by refinancing
Current Payment
$2,363/mo
New Payment
$1,987/mo
Breakeven
16 mo (1.3 yr)
Total Interest (Current)
$358,968
Total Interest (Refi + Costs)
$371,414
Lifetime Savings
-$12,447

Cumulative Cost Over Time

When Does Refinancing Make Sense?

Refinancing replaces your existing mortgage with a new loan, typically at a lower interest rate. It makes financial sense when the monthly savings outweigh the upfront closing costs within a reasonable timeframe — known as the breakeven point.

Key Factors to Consider

  • Rate difference: A drop of at least 0.5–1% is usually needed to justify closing costs.
  • How long you'll stay: If you plan to sell before the breakeven month, refinancing may cost you more than it saves.
  • Closing costs: These typically run 2–5% of the loan balance and are the main hurdle to recouping your investment.
  • Loan term: Switching from a 30-year to a 15-year term raises your payment but dramatically cuts total interest.

How This Calculator Works

Enter your current loan details and the proposed new terms. The calculator computes your new monthly payment, total interest for both scenarios, and the month at which refinancing "pays for itself." The chart shows cumulative cost for each path so you can visually compare.

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