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Refinance Calculator

Compare your current mortgage with a new refinance loan and estimate monthly savings, break-even time, and total interest.

Current Mortgage

New Refinance Loan

Refinance Results

Monthly Savings $0.00
Current Monthly Payment $0.00
New Monthly Payment $0.00
Break-Even Time —
Current Remaining Interest $0.00
New Total Interest $0.00
Closing Costs $0.00
Net Interest Difference $0.00

About the Refinance Calculator

The Numelios Refinance Calculator helps compare an existing mortgage with a new refinance option. It can estimate the change in monthly payment, potential interest savings, closing costs, and the time needed to recover those upfront refinancing costs.

Refinancing can be useful when interest rates fall, when a borrower wants to change the loan term, or when monthly payment reduction is important. The lowest interest rate is not always the lowest-cost option, so total fees and break-even time should also be considered.

How Refinance Savings Are Estimated

A refinance comparison starts by estimating the monthly payment on the existing mortgage and comparing it with the payment on the proposed new loan.

Monthly Savings = Current Payment − New Payment

Closing costs are then compared with the estimated monthly savings to calculate a simple break-even period.

Break-Even Months = Closing Costs ÷ Monthly Savings

A break-even calculation is most useful when the new monthly payment is lower than the current payment.

Refinance Example

Assume you have a remaining mortgage balance of $300,000 and are considering refinancing into a lower-rate loan.

Current Rate 7.00%
New Rate 6.00%
Closing Costs $6,000
Monthly Savings Depends on term

The exact result depends on the remaining balance, current term, new term, interest rates, and refinance costs entered into the calculator.

What Can Affect a Refinance Decision?

New Interest Rate

A lower rate can reduce monthly payments and total interest, but the size of the rate reduction matters relative to refinancing costs.

Closing Costs

Application fees, lender charges, appraisal costs, title fees, points, and other expenses can reduce or delay the financial benefit.

Loan Term

Extending the repayment period can lower the monthly payment while potentially increasing total interest paid over time.

Time in the Home

If you expect to sell or refinance again before reaching the break-even point, paying substantial closing costs may be less attractive.

Monthly Savings vs. Total Cost

A refinance can lower the monthly mortgage payment without necessarily reducing the total cost of borrowing. For example, refinancing a loan with 20 years remaining into a new 30-year mortgage may reduce the monthly payment because the balance is spread over a longer period.

When comparing options, consider both the immediate payment change and the long-term interest cost. The Amortization Calculator can help show how principal and interest are distributed over time.

Frequently Asked Questions

What is the refinance break-even point?

The break-even point is the estimated time needed for monthly savings to recover the upfront cost of refinancing. For example, $6,000 in closing costs divided by $200 in monthly savings produces a simple break-even period of about 30 months.

How much lower should my rate be before refinancing?

There is no single rate reduction that works for everyone. The benefit depends on the loan balance, closing costs, new term, expected time in the property, and the difference between the current and proposed rates.

Can refinancing increase total interest?

Yes. A lower monthly payment can still result in more total interest if the repayment period is extended significantly. Compare the full repayment cost, not only the monthly payment.

Can closing costs be added to the new mortgage?

Some refinance structures may allow certain costs to be financed, but doing so increases the loan balance. The terms available depend on the lender and loan program.

Should I refinance if I plan to move soon?

The break-even period is especially important in that situation. If you expect to sell before the estimated savings recover the refinance costs, the transaction may provide less financial benefit.

This calculator is provided for informational and educational purposes only. Results are estimates and do not constitute financial advice, mortgage approval, a loan offer, or a guarantee of refinancing terms.