ConvertOnlineMortgage Refinance Calculator with Break-Even and Savings
Report source: https://convertonline.org/calculators/mortgage-refinance-calculator
Compare the current loan with a proposed refinance using payment, remaining balance, closing costs, and the time you expect to keep the mortgage.
Calculations run in your browser. Your financial inputs are not uploaded or stored.
Mortgage Refinance Calculator
Estimated refinance break-even
Detailed results
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How the mortgage refinance calculator works
At each month, payoff-adjusted cost equals payments made plus the remaining payoff balance, plus upfront refinance costs, minus cash received. Break-even is the first month the proposed cost is no greater than the current cost.
Financed points and closing costs increase the proposed loan balance. Cash out is shown separately so borrowed cash is not mistaken for savings.
How to use this calculator
- Enter the remaining balance, rate, term, and payment for the current mortgage.
- Enter the proposed rate, term, points, costs, and how long you expect to keep the loan.
- Compare payment change, payoff-adjusted break-even, horizon savings, balances, and total interest.
Assumptions and limitations
- Both mortgages have fixed rates and monthly payments.
- The comparison excludes property tax, insurance, HOA fees, tax deductions, and prepayment penalties.
- A lower payment does not by itself mean lower cost; balance and closing costs are included in break-even.
Sources and further reading
Worked example
Example: refinancing a $250,000 balance
Compare 25 years remaining at 6.5% with a new 20-year loan at 5.5% and $3,000 of costs paid upfront.
The estimated payments are $1,688.02 and $1,719.72. Although the new payment is higher, lower payoff-adjusted cost reaches break-even around month 15.
Frequently asked questions
How is refinance break-even calculated?
The comparison tracks payments, remaining balances, upfront costs, financed costs, and cash received rather than dividing fees by monthly payment savings alone.
What does financing closing costs change?
Financed costs reduce upfront cash but increase the new principal, monthly payment, interest, and payoff balance.
Can a refinance save interest with a higher payment?
Yes. A shorter term can raise the payment while reducing the payoff period and total interest, so compare both cash flow and total cost.
This calculator provides an estimate for planning and education. Actual lender calculations, rates, costs, taxes, insurance, market changes, and individual circumstances may differ.