Free Refinance Calculator Online
Use this free refinance calculator to compare your current mortgage against a new refinance offer. See your monthly payment savings, total interest reduction, and break-even timeline to decide if refinancing is worth it.
Lifetime Savings
Enter your details to compare
How This Refinance Calculator Works
This refinance calculator compares two loan scenarios side by side — your current mortgage and a proposed refinance. It computes the monthly payment for each using standard amortization, then calculates your monthly savings, total interest savings over the loan life, and the break-even point where savings exceed closing costs.
For example, if you owe $280,000 at 6.75% with 25 years remaining and refinance to 5.25% on a new 30-year term with $7,000 in closing costs, the refinance calculator shows your payment drops from $1,946 to $1,546 — saving $400/month. Your break-even is about 18 months, and you save $52,000 in total interest even with the longer term.
The calculator also accounts for how resetting to a new 30-year term affects your total cost. Sometimes a lower rate with a longer term actually costs more in total interest — the refinance calculator reveals these trade-offs clearly.
Rate Drop Impact on a $300K Mortgage
Based on a 30-year fixed mortgage. Actual savings depend on remaining balance and term. Run your exact numbers in the refinance calculator above.
3 Refinance Strategies Worth Considering
Rate & Term
The classic refinance: lower your rate, keep a similar term, and pocket the monthly savings. Best when rates have dropped at least 0.75% from your current mortgage. On a $300,000 loan, a 1% rate reduction saves roughly $200/month and $72,000 over 30 years.
Shorten Term
Refinancing from a 30-year to a 15-year builds equity faster and saves massive interest. Your payment goes up, but you own your home free and clear in half the time. A $250,000 loan at 5.5% over 15 years costs $148,000 less in interest than the same loan over 30 years.
Cash-Out
Tap your home equity by refinancing for more than you owe. Useful for high-interest debt consolidation, home improvements, or large expenses. Rates are typically 0.125-0.25% higher than rate-and-term refinances, and you'll need at least 20% equity remaining after the cash-out.
Frequently Asked Questions
Disclaimer: This refinance calculator is for educational purposes only. Results are estimates based on the inputs you provide and do not include property taxes, insurance, or PMI unless specified. Actual refinance terms, rates, and costs vary by lender and your financial profile. Consult a mortgage professional before making refinancing decisions.
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