Rate Savings Tool · Free

MortgageDaily CalculatorHome Refinance Calculator

Find out if refinancing makes financial sense. Compare your current vs. new payment, see monthly savings, and calculate your exact break-even point on closing costs.

Break-even auto-calculated
Min rate drop 0.5% rule of thumb
Closing costs 2–5% typical
Refinance Calculator
Home Refinance Calculator
ZIP: —
Current Loan
New Refinance Loan
Property & Advanced Options
New estimated monthly payment
$0.00
—
Monthly payment change
—
vs. current P&I + same costs.
Break-even (closing costs)
—
Months to recover via savings.
New loan amount
—
Balance + cash out (+ rolled costs).
Amortization Schedule (New Loan P&I)—
MonthPaymentPrincipalInterestBalance
Estimates only. Rates, taxes, insurance, and PMI vary by lender, program, and location.
0.5%+
Rate Drop That Typically Justifies Refi
2–5%
Typical Closing Cost Range
Break-Even
Automatically Calculated for You
Step by Step

How to Use This Calculator

1
Current loan details — remaining balance, current rate, and remaining term.
2
New loan terms — the refinance rate you've been quoted and new loan term.
3
Closing costs — typically $3,000–$7,000. Choose to pay upfront or roll into loan.
4
Optional: cash out — add cash-out amount to increase new loan balance.
5
See results — monthly savings, break-even month, and new loan amount appear instantly.
📐 Break-Even Formula
Closing Costs ÷ Monthly Savings = Break-Even Months

Example: $6,000 closing costs ÷ $200/mo savings = 30 months
Stay past month 30 → refinance pays for itself. The calculator shows your exact number.
When It Makes Sense

Should You Refinance?

✅
Rate Drops 0.5%–0.75%+
A half-point drop on $300K saves ~$90–100/month. Over 3 years that exceeds typical closing costs.
✅
Your Credit Score Improved
A score jump from 650 to 760 can unlock a significantly better rate than when you originally borrowed.
✅
Switch ARM to Fixed
If you have an adjustable-rate and rates are rising, locking into a fixed rate gives you payment certainty.
⚠️
Watch: Loan Term Reset
Refinancing a 30-year into another 30-year restarts front-loaded interest. Consider a 15 or 20-year term to avoid paying more total interest.
⚠️
Moving Soon? Think Twice
If selling in 2–3 years, savings may not cover closing costs. Check the break-even point before deciding.
FAQ

Refinance Calculator FAQ

When does refinancing make sense?
When rates drop significantly below your current rate, your credit has improved, or you want to switch from ARM to fixed. Use the calculator to see if the savings justify the costs for your specific situation — general rules don't replace real numbers.
What is the break-even point?
The break-even point is when cumulative monthly savings equal the closing costs paid. If closing costs are $6,000 and you save $200/month, you break even in 30 months. Stay past that and the refinance is profitable. The calculator shows your exact break-even automatically.
Can I refinance to a shorter term?
Yes, and it's often the smart move. Refinancing from a 30-year to a 15-year at a lower rate can save hundreds of thousands in total interest. Monthly payment will be higher, but total cost is dramatically lower. Run both scenarios side-by-side in the calculator.
Does refinancing affect my credit score?
A refinance requires a hard credit inquiry, which may lower your score a few points temporarily. Rate shop within a 14–45 day window — credit bureaus typically count multiple mortgage inquiries as one during this period, minimizing the impact.
Where can I find official refinancing guidance?
The Consumer Financial Protection Bureau (CFPB) provides clear guidance on when refinancing makes sense, what closing costs to expect, and how to compare lender offers. Visit HUD.gov for additional refinancing resources and government loan options.
Our mortgage calculator can project your monthly mortgage payment, based on the purchase price, down payment, loan term, interest rate, homeowner’s insurance, property tax, and more. Each item can be adjusted to see how it will affect your payment.

We take the calculator a step further to include your zip code, credit score, and HOA fees (if applicable) to give you an even clearer estimate.

You can also try our amortization schedule calculator to see how the estimate total will break down in terms of principal and interest per month.

Mortgage Payment Breakdown

Monthly mortgage payments consist of various components, in addition to the principal and interest. Here are some key pieces within the payment:

Principal Loan

 The amount borrowed from the lender, separate from interest. With each mortgage payment, the principal will decrease.

Interest

 The cost of borrowing money. A lender will charge you an annual percentage for providing you with the upfront capital to buy your home. This percentage will vary per person, but it’s mainly determined by current rate trends and the borrower’s creditworthiness.

 Homeowner’s Insurance

An insurance policy that will cover the homeowner for damage or a loss due to fire, theft, harsh weather conditions, etc. Most insurance providers will apply an annual premium, which is then broken down into monthly payments.

Property Taxes

The tax paid on your home and any corresponding land. Property taxes are assessed annually based on the value of the property. Many homeowners choose to roll them into the monthly mortgage payments. In this case, 1/12th of the annual tax bill is due each month.

 Mortgage Insurance

 If your down payment is less than 20% of the purchase price, a lender will typically require a mortgage insurance policy. This will protect the lender if the borrower defaults on the loan. Once the borrower’s equity increases to 20%, the insurance policy can be cancelled.

 HOA Fees

 If you belong to a homeowner’s association of a co-op or condo, member residents usually pay dues directly to the source. While this fee is not typically rolled into the mortgage, it is still a monthly bill that should be accounted for.

How to Use Our Mortgage Payment Calculator

  • Home Price: enter the home’s purchase price or current market value if refinancing.
  • Down Payment: enter the amount of cash you’re paying upfront.
  • Period: choose your loan type and term (5/1 ARM Variable, 15-year fixed, or 30-year-fixed).
  • Rate: enter the annual interest rate attached to your loan.

Advanced Options

  • Zip Code: enter the zip code of the house you’re buying or refinancing.
  • Credit Score: choose a range that best represents your current credit score.
  • Property Tax: enter the amount you owe for monthly property tax, i.e., the annual amount divided by 12.
  • Homeowner’s Insurance: enter your monthly insurance premium.
  • HOA fees (optional): enter your monthly HOA fees.

After all these figures have been entered, the calculator will estimate your total payment. This number will be shown at the top of the page.

The Underlying Formula… For the Math Geeks

A mortgage payment calculation is based on this formula:

M = P [ r (1+r) ^n / ((1+r) ^n) -1)]

  • M = total payment
  • P = principal loan amount
  • r = monthly interest rate
  • n = the number of payments over the life of the loan

The Benefits of Using a Mortgage Calculator

Buying a home is likely the biggest the purchase you’ll ever make – kind of a big deal. It’s important to make sure you’re making the right decision at every step of the way. This includes setting an attainable budget and a plan for financing the purchase.

A mortgage calculator can help with that. It will break down payments by month, helping you determine exactly what priced home you can afford.

It’s best to only look at homes within your budget. Otherwise, you could fall in love with one that’s not within reach. A mortgage calculator will help you set that budget, and therefore your expectations when searching for homes online and going to open houses.

The calculator takes all aspects into account – the principal loan, interest, property tax, insurance, etc. You can home shop confidently, knowing you’re within budget.

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