Find out if refinancing makes sense for you. Calculate monthly savings, break-even point, and get a clear recommendation based on your situation.
This refinance calculator compares your current mortgage to a new loan and gives you a clear answer on whether refinancing makes financial sense. The break-even analysis tells you exactly how many months it takes to recover closing costs through monthly savings. Tell the calculator how long you plan to stay in your home, and it gives you a direct ✅ or ❌ recommendation based on your numbers. All calculations run in your browser — your data never leaves your device.
Refinancing generally makes sense when you can lower your interest rate by at least 0.5–1%, you plan to stay in the home long enough to recoup closing costs (the break-even point), and your credit score and home equity have improved since your original loan. Our refinance calculator shows your exact break-even point based on your numbers.
The refinance break-even point is when your cumulative monthly savings equal your closing costs. For example, if refinancing saves $327/month and closing costs are $6,000, you break even in about 18 months ($6,000 ÷ $327). If you plan to stay longer than 18 months, refinancing saves you money. If you might move sooner, it may not be worth it.
Refinancing typically costs 2–5% of the loan amount in closing costs, including origination fees, appraisal, title search, title insurance, and recording fees. On a $300,000 loan, expect $6,000–$15,000 in closing costs. Some lenders offer "no-closing-cost" refinances with a slightly higher rate instead.
Savings from refinancing depend on how much you lower your rate and how long you keep the loan. Dropping from 7.5% to 6.5% on a $280,000 30-year mortgage saves about $160–$180/month in interest. Over 30 years, that is $50,000+ in savings, though most people refinance or sell before then.
Refinancing causes a small, temporary credit score dip (typically 5–10 points) from the hard credit inquiry. Your score usually recovers within a few months. If you are rate shopping, multiple mortgage inquiries within a 14–45 day window are treated as a single inquiry by FICO, so shopping multiple lenders does not significantly amplify the impact.