Refinance Mortgage Calculator

Q: How does the calculator work out my balance if I only know my original loan?

Pick I know my original loan details . Enter your original amount, term, start year, and current rate. The tool figures out your original payment, counts the months you have paid, and uses standard amortization math to find today's balance. It is an estimate, so check your real statement for the exact number.

Updated Jul 31, 2026 By Jehan Wadia

Comparison of your current mortgage and the proposed new mortgage, with the difference between them.
Metric	Current Loan	New Loan	Difference
Monthly Payment (P&I only)	—	—	—
Monthly Payment (Total PITI)	—	—	—
Remaining Loan Term	—	—	—
Remaining Interest	—	—	—
Total Cost of Loan	—	—	—
Estimated Closing Costs	—	—	—
Savings Over Planned Stay	—	—	—

Introduction

A refinance means you replace your old home loan with a new one. People do this to get a lower interest rate, a smaller monthly payment, a shorter loan, or cash from their home's value. But refinancing is not free. You pay closing costs. So the real question is simple: will the money you save be more than the money you spend?

This refinance mortgage calculator answers that question. Put in your current loan balance, your rate, and how much time is left. Then add your new loan term and rate. You can pick the best available rate, today's national average, or type in a rate a lender quoted you. If you want to check the payment on the loan you have now, start with our Mortgage Calculator.

The calculator shows your new monthly payment, how much you save each month and each year, and your break-even point. The break-even point is how long it takes for your savings to pay back your closing costs. If you plan to move before that point, refinancing may cost you money instead of saving it. Our general Break Even Calculator works through the same idea for any upfront cost.

You can also add discount points, a cash-out amount, your property tax, and your home insurance. Your ZIP code helps estimate tax and insurance costs, and you can change those numbers to match your real bills using the Property Tax Calculator and the Homeowners Insurance Calculator. Charts show your loan balance over time, and a step-by-step section shows the math behind every result. For a payment-by-payment schedule, try the Mortgage Amortization Calculator.

How to Use Our Refinance Mortgage Calculator

Enter your current mortgage details, your new loan offer, and your closing costs. The refinance calculator then shows your new monthly payment, your monthly and lifetime savings, your break-even point, a loan comparison table, charts, and the full math behind the answer.

How would you like to describe your current loan? Pick "I know my remaining balance" if you know what you still owe. Pick "I know my original loan details" and the calculator will work out your balance for you.

Remaining Loan Balance: Type how much you still owe on your mortgage today.

Remaining Term — Years: Type the whole years left on your loan, from 0 to 30.

Remaining Term — Months: Type the extra months left after those years, from 0 to 11.

Original Loan Amount: Type the amount you first borrowed when you bought the home.

Original Loan Term: Choose the length of your first loan: 10, 15, 20, or 30 years. See how the two most common choices compare with the 15 Year Mortgage Calculator and the 30 Year Mortgage Calculator.

Year Mortgage Began: Type the year your loan started. It must be a past year within the last 30 years.

Current Interest Rate: Type the yearly rate you pay now, like 6.875%.

New Loan Term: Choose how many years your new refinance loan will run.

New Interest Rate: Tap one of the three tiles. Use the best available rate, the national average rate, or "Enter My Own Rate" to use a rate a lender quoted you. The Mortgage Rate Calculator and the APR Calculator help you compare quotes fairly.

Your Rate: If you chose your own rate, type it here.

This is a cash-out refinance: Check this box only if you want cash back from your home equity. Our Cash Out Refinance Calculator and Home Equity Calculator go deeper on that option.

Estimated Property Value: Type what your home is worth now. It must be more than your loan balance.

Cash-Out Amount: Type how much cash you want to take out. The calculator shows your top limit at 80% loan-to-value, which you can check with the LTV Calculator.

Credit Score Range: Pick your score band. This gives rate context and does not change your entered rate. The Credit Utilization Calculator shows one factor that moves your score.

ZIP Code: Type your 5-digit ZIP code so we can estimate your property tax and home insurance.

How do you want to enter closing costs? Choose a percentage of the new loan or a flat dollar amount.

Closing Costs (% of new loan): Type a percent. Most refinance closing costs run 2% to 5%.

Closing Costs (flat amount): Type the total dollar cost of lender fees, title, appraisal, and escrow. The Closing Cost Calculator breaks these fees out line by line.

Discount Points: Type 0 to 4 points. Each point costs 1% of the loan and cuts your rate by about 0.25%.

Annual Property Tax: Keep our estimate or type your real yearly tax bill.

Annual Homeowners Insurance: Keep our estimate or type your real yearly premium.

How Long Do You Plan to Stay? Type the years you will stay in the home, from 1 to 30. This tells you if you will reach break-even before you move. If you are weighing a move instead, see the Rent vs Buy Calculator.

Click Calculate to see your results. Click Reset to start over with the default values.

What Is a Mortgage Refinance?

Refinancing means you replace your current home loan with a new one. The new loan pays off the old loan. You then make payments on the new loan instead. People refinance to get a lower interest rate, a smaller monthly payment, a shorter loan, or cash from their home's value. The same idea applies to other debts too, such as an Auto Refinance Calculator for a car loan.

Why People Refinance

Lower rate: If rates dropped since you bought, a new rate can cut your payment and your total interest. The Mortgage Interest Calculator shows how much interest you would pay either way.
Shorter term: Moving from 30 years to 15 years raises the monthly payment but saves a lot of interest. Adding money to your current loan can do something similar — see the Mortgage Extra Payment Calculator and the Biweekly Mortgage Calculator.
Lower payment: Stretching the loan back out to 30 years lowers the monthly bill, but you pay more interest over time. A Mortgage Recast Calculator shows a cheaper way to lower a payment without new closing costs.
Cash-out: You borrow more than you owe and keep the difference in cash. Most lenders let you borrow up to 80% of your home's value. Compare it against a HELOC Calculator or a Home Equity Loan Calculator before you decide.

Closing Costs and Break-Even

A refinance is not free. Closing costs usually run 2% to 5% of the loan. They cover lender fees, title work, an appraisal, recording fees, and escrow setup. You can also pay discount points. One point costs 1% of the loan and cuts your rate by about 0.25%.

The break-even point is how long it takes for your monthly savings to pay back those costs. Divide your total closing costs by your monthly savings. If costs are $8,000 and you save $200 a month, you break even in 40 months. If you plan to move before then, the refinance likely loses you money. If your goal is to be debt-free sooner, compare the result with an Early Mortgage Payoff Calculator or the Mortgage Payoff Calculator.

What Goes Into Your Monthly Payment

Your full housing payment is called PITI: principal, interest, taxes, and insurance. The PITI Calculator shows each piece on its own. Refinancing only changes the principal and interest part. Property tax and homeowners insurance stay about the same, since they are tied to your home, not your loan. Tax rates and insurance costs change a lot by state and ZIP code. If you put less than 20% down originally, a PMI Calculator shows the extra premium a refinance might remove.

Things to Watch Out For

Starting a new 30-year loan resets the clock. Even with a lower rate, you can pay more interest in total because you are paying for more years. Run the numbers through an Amortization Calculator to see the full picture. A cash-out refinance also raises your balance, so your payment may go up. Lenders will also look at your DTI Calculator ratio when they approve you. And your credit score matters: a higher score usually earns a lower rate, while a lower score can add 1% or more to your rate.

Simple Refinance Rules of Thumb

Refinancing often makes sense if you can drop your rate by about 0.5% to 1% or more.
Make sure you will stay in the home longer than your break-even point.
Compare total loan cost, not just the monthly payment — a plain Loan Calculator is handy for side-by-side checks.
Get quotes from more than one lender, since fees and rates differ.
If you are buying rather than refinancing, check what you can afford first with the Home Affordability Calculator and the Down Payment Calculator.

Formulas used

Monthly Payment (Principal & Interest)

M=\frac{P\cdot i}{1-(1+i)^{-n}},\quad i=\frac{r\%}{1200}

Remaining Balance After k Payments

B_k=P(1+i)^k-M\cdot\frac{(1+i)^k-1}{i}

New Loan Amount (with Cash-Out)

L_{\text{new}}=B_{\text{remaining}}+\text{CashOut}

Effective New Rate After Discount Points

r_{\text{eff}}=\max\left(0.001\%,\; r_{\text{nominal}}-\left(\text{points}\times 0.25\%\right)\right)

Total Monthly Payment (PITI)

\text{PITI}=M+\frac{\text{AnnualTax}}{12}+\frac{\text{AnnualInsurance}}{12}

Monthly and First-Year Savings

\Delta=\text{PITI}_{\text{cur}}-\text{PITI}_{\text{new}},\qquad \Delta_{\text{year}}=12\,\Delta

Total Closing Costs (including points)

C=\left(\frac{c\%}{100}\times L_{\text{new}}\;\text{or}\;C_{\text{flat}}\right)+\left(\text{points}\times 0.01\times L_{\text{new}}\right)

Break-Even Month and Lifetime Savings

t_{\text{BE}}=\left\lceil\frac{C}{\Delta}\right\rceil,\qquad S_{\text{life}}=M_{\text{cur}}n_{\text{cur}}-M_{\text{new}}n_{\text{new}}-C

Frequently asked questions

Is this refinance calculator free to use?

Yes. The calculator is free and you do not need to sign up. Your numbers stay in your browser and are not saved or shared.

Why is my new payment higher even though my rate is lower?

A shorter term raises the monthly payment. If you move from 24 years left to a 15-year loan, you pay off the balance faster, so each payment is bigger. A cash-out amount also raises the payment because you borrow more.

Check the Remaining Interest row in the comparison table. You may still pay far less interest overall.

What does the break-even point mean here?

It is the number of months it takes your monthly savings to pay back your closing costs.

The calculator divides total closing costs by your monthly savings and rounds up. If you plan to move before that month, the refinance loses money.

Why does my break-even say Not reached?

That means your new payment is the same or higher than your old one. With no monthly savings, closing costs never get paid back by savings.

Try a longer new term, a lower rate, fewer points, or less cash out.

How does the calculator work out my balance if I only know my original loan?

Pick I know my original loan details. Enter your original amount, term, start year, and current rate.

The tool figures out your original payment, counts the months you have paid, and uses standard amortization math to find today's balance. It is an estimate, so check your real statement for the exact number.

Are the Best Available Rate and National Average real quotes?

No. They are sample rates built into the tool so you can compare fast. They are not offers.

For a real answer, get a quote from a lender and type it into the Enter My Own Rate tile.

Does my credit score change the rate the calculator uses?

No. The credit score box only shows a note about how your band usually prices. The math always uses the rate you picked or typed.

A higher score often earns a lower quoted rate, so ask lenders what rate your score gets.

How do discount points work in this tool?

Each point costs 1% of your new loan and cuts your rate by about 0.25%.

The cost is added to your closing costs, so your break-even point moves out. The results box shows the exact dollar cost and the new effective rate.

Should I buy points?

Points help if you keep the loan a long time. Divide the point cost by the extra monthly savings the lower rate gives you. If you will stay past that many months, points pay off.

If you may move or refinance again soon, skip them.

Why is my cash-out amount capped?

Most lenders limit a cash-out refinance to 80% of your home's value. The calculator uses that same rule.

Your limit is 80% of your property value minus your current balance. The hint under the box shows your maximum.

Does the cash I take out count as savings?

No. Cash-out money is borrowed, not earned. The calculator adds it to your loan balance, so your payment and total interest go up.

The savings numbers show only the payment side, not the cash you pocket.

Why do property tax and insurance look the same for both loans?

Those bills are tied to your home, not your mortgage. Refinancing does not change them.

They are included in both payments so you can compare full PITI, which is what you actually pay each month.

Where do the tax and insurance estimates come from?

Your ZIP code. The tool matches the first three digits to local tax rates and typical insurance costs, then applies that to an estimated home value.

If your ZIP is not in the list, it uses national averages. You can type your real numbers over either estimate.

Can I change the estimated tax and insurance numbers?

Yes. Just type your real yearly amounts in the boxes on the Closing Costs and Taxes tab.

Once you edit them, the tool stops overwriting your values when your ZIP code changes.

What is Lifetime Savings and how is it different from savings over my stay?

Lifetime Savings compares all payments on the current loan against all payments on the new loan, minus closing costs.

Savings Over Planned Stay only counts the years you say you will live there. Use the stay number if you may sell.

Can lifetime savings be negative when I save money each month?

Yes. Stretching a loan back out to 30 years lowers the payment but adds years of interest.

You save monthly and still pay more in total. The card turns orange and says Lifetime Additional Cost when that happens.

Why does the bar chart use a log scale?

A monthly payment is a few thousand dollars while total loan cost can be hundreds of thousands. On a normal scale the payment bar would vanish.

A log scale keeps all three bars visible. The exact dollar amount is printed on each bar.

What do the two lines on the balance chart show?

The solid purple line is your current loan balance over time. The dashed orange line is the new loan.

Where each line hits zero is the payoff year. The dashed vertical marker shows when you plan to move.

Does the calculator include PMI?

No. PMI is not part of this tool. If you owe more than 80% of your home's value, your lender may add PMI to the new loan, so your real payment would be higher.

Does it include HOA dues?

No. HOA fees are not included. Add them to the new payment yourself if you pay them. They do not change your savings, since you pay them either way.

What closing costs should I enter?

Include lender fees, title work, appraisal, credit report, recording fees, and escrow setup.

If you do not have a quote yet, use 2% to 5% of the new loan. Three percent is a common starting point.

What if my lender rolls closing costs into the loan?

This tool treats closing costs as paid up front, so break-even is measured against them.

To model rolling them in, add the cost to your balance and set closing costs near zero. Your payment will be a bit higher.

How much of a rate drop do I need to make refinancing worth it?

There is no single number. A drop of about 0.5% to 1% often works, but the real test is your break-even point.

Run your own numbers. A small drop on a large balance can still beat a bigger drop on a small one.

Why do I get an error about the year my mortgage began?

The year must be in the past and within the last 30 years. It also cannot make the loan already paid off.

If your original term ended before today, the math has no balance left, so change the year or the term.

Do I have to fill in both tabs before calculating?

The tabs come loaded with sensible defaults, so you can calculate right away. For an accurate result, check the Closing Costs and Taxes tab and update the numbers to match your quote.

The Calculate button on either tab runs the full result.

What happens if I leave a required field blank or wrong?

A red banner appears at the top listing every problem. Click any item in the list to jump straight to that box, even if it sits on the other tab.

Can I use this for an FHA or VA refinance?

You can use it for the basic payment and break-even math. It does not include FHA mortgage insurance premiums or the VA funding fee.

Add those fees to your closing costs for a closer estimate.

Are these results a loan offer?

No. This is an estimate tool for planning only. Your real rate, fees, and payment come from a lender after they review your credit, income, and home value.

Your Refinance Results

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