Mortgage Refinance Calculator
Compare current and proposed mortgage payments and estimate a simple closing-cost break-even point.
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Break-even is only one refinance test
Also compare total interest, loan term, points, closing costs and how long you expect to keep the property.
How to use the mortgage refinance calculator
Enter the remaining mortgage balance, current rate and remaining term, then enter the proposed refinance rate, new term and estimated closing costs. TutorCalc compares the principal-and-interest payments and estimates how long monthly savings would take to recover the closing costs.
Understanding the break-even point
The break-even estimate is the closing cost divided by estimated monthly payment savings. A shorter break-even period can be useful when comparing refinance scenarios, but it does not tell the whole story. Consider the new loan term, points, fees, total interest and how long you expect to keep the property.
Example refinance scenario
If a refinance costs $4,000 and lowers the estimated monthly principal-and-interest payment by $200, the simple break-even period is about 20 months. Selling or refinancing again before that point could change the economics of the decision.
Related mortgage tools
Compare the Mortgage Calculator, Home Affordability Calculator, Rent vs Buy Calculator and Debt-to-Income Calculator.