Refinance Calculator
See how much you could save by refinancing your mortgage. Compare your current payment to a new rate and find your break-even point.
Default: 7.03% (30-yr fixed, as of September 2026 — Freddie Mac PMMS via FRED). Edit to match your own quote.
Break-Even Analysis
Payment Comparison
See your actual refinance rate
Based on your numbers, compare personalized refinance offers from top lenders — no impact to your credit score.
Last reviewed: July 3, 2026 · By the askdoss Editorial Team. This is a planning estimate, not financial advice or a quote.
Use this calculator to estimate what refinancing your mortgage could do for your monthly budget. Enter your current loan balance, rate, and remaining term, then a new rate and term, and the tool estimates three things: your new monthly payment, your monthly savings versus your current payment, and your break-even point — the number of months it takes for those savings to pay back the cost of refinancing. Those three numbers, together, are usually enough to tell whether a refinance is worth pursuing or worth skipping.
This page explains how the estimate is built, when refinancing tends to make sense, what it costs, and answers to common questions. The results are estimates for planning only — your actual rate, payment, and closing costs depend on your credit, loan-to-value, lender, and location, and come from a lender’s official Loan Estimate.
How this calculator works
The calculator compares two loans: the one you have now and the one you’re considering. For each, it computes the monthly principal-and-interest payment from the loan amount, interest rate, and term using the standard amortization formula. The monthly savings is simply your current payment minus your new payment.
The key output is the break-even point, calculated as:
Break-even (months) = total refinance closing costs ÷ monthly savings
If refinancing costs you $6,000 and lowers your payment by $200/month, you break even in 30 months (about 2.5 years). Stay in the home past that point and the refinance is net positive; sell or refinance again before it and you likely lose money on the transaction.
To ground the closing-cost input: refinance closing costs typically run about 2% to 6% of the loan amount as of July 2026 (many lenders cite a narrower 2%–5% range for rate-and-term refis) — on a $300,000 loan that’s roughly $6,000–$18,000. Bankrate — How Much Does It Cost to Refinance a Mortgage?, as of July 2026
For reference on the “new rate” you might plug in: the national average 30-year fixed refinance rate was about 6.72% as of July 3, 2026. Bankrate — 30-Year Refinance Rates, as of July 2026 Rates move daily and vary by borrower, so treat any single figure as a starting assumption, not a quote.
When refinancing makes sense
A few rules of thumb help decide whether to run the numbers seriously:
- Rate drop. A common guideline is that a refinance may be worth exploring when you can lower your rate by roughly 0.5 to 1 percentage point or more, but this is only a screen — the break-even point is the real test. Even a smaller drop can pay off on a large balance; a bigger drop may not if closing costs are high or you’ll move soon.
- Break-even vs. how long you’ll stay. If you expect to keep the home and loan well beyond the break-even month, refinancing generally makes sense. If you might sell or refinance again before then, the upfront costs may never be recovered.
- Rate-and-term vs. cash-out. A rate-and-term refinance changes only your rate and/or loan length to lower the payment or pay off faster. A cash-out refinance replaces your loan with a larger one and gives you the difference in cash — useful for consolidating debt or funding a project, but it increases your balance and usually carries a slightly higher rate. Match the type to your goal.
Costs of refinancing
Refinancing is essentially taking out a new mortgage, so it carries most of the same fees as your original loan. Typical line items include:
- Lender/origination fees — the lender’s charge to process and underwrite the loan.
- Appraisal fee — to confirm the home’s current value.
- Title search and title insurance — to verify and insure clear ownership.
- Recording and government fees — to file the new mortgage with your county.
- Prepaids and escrow — property taxes and homeowners insurance collected upfront.
- Discount points (optional) — an upfront payment to buy down your rate.
Altogether these commonly total 2%–6% of the loan amount as of July 2026. Bankrate — How Much Does It Cost to Refinance a Mortgage?, as of July 2026
A “no-cost” refinance does not mean the fees disappear — it means you don’t pay them at closing. Instead the lender either rolls the costs into your loan balance (so you finance them and pay interest on them) or charges a slightly higher interest rate to cover them over time. That can be sensible if you’re short on cash or plan to move soon, but over a long hold it usually costs more than paying closing costs upfront. Compare the true break-even for each option.
Rate note: the calculator’s default interest rate is refreshed automatically from public data (Freddie Mac Primary Mortgage Market Survey, via the FRED API) and the figures cited on this page are reviewed on a monthly-to-quarterly cadence, so a default rate never goes silently stale. Any rate is a starting assumption — your actual rate comes from a lender’s Loan Estimate.
Frequently Asked Questions
How much of a rate drop makes refinancing worth it?
There’s no universal number. A 0.5–1 percentage-point drop is a common screening guideline, but the honest answer is: whenever your closing costs divided by your monthly savings gives a break-even you’ll comfortably outlast. On a large balance, even a small rate cut can pay off quickly.
Does refinancing reset my loan term?
It can. If you refinance a loan with 22 years left into a new 30-year mortgage, you restart the clock at 30 years — which lowers the payment but can increase total interest paid over the life of the loan. To avoid that, you can refinance into a shorter term (e.g., a 15- or 20-year loan) so you don’t stretch the payoff back out.
Do I owe taxes on a cash-out refinance?
Generally no — cash taken out in a refinance is loan proceeds, not income, so it typically isn’t taxable. However, the rules on deducting the mortgage interest (especially on the cash-out portion) depend on how you use the funds. Consult a tax professional or the IRS for your situation; this is not tax advice.
Will refinancing hurt my credit score?
Usually only slightly and temporarily. Applying triggers a hard credit inquiry, which can dip your score a few points, and opening a new loan lowers the average age of your accounts. Rate-shopping multiple lenders within a short window (commonly ~14–45 days depending on the scoring model) is typically treated as a single inquiry. Scores generally recover within a few months of on-time payments.
How long does a refinance take?
It varies by lender and market, but rate-and-term refinances commonly close in roughly 30–45 days. Cash-out refinances can take longer due to added underwriting.
Can I refinance with the same lender?
Yes, and it can simplify paperwork, but you’re not required to. Comparing offers from multiple lenders is the best way to confirm you’re getting a competitive rate and fee structure.
Related guides & tools
Keep planning with these askdoss tools and guides: