Refinance savings calculator
Would refinancing actually pay for itself?
One division problem decides most refinance questions: total closing costs divided by monthly savings equals the number of months until you break even.
Refinance savings calculator
Break-even
21 months
$4,800 in costs recovered at $231 a month (1 year, 9 months)
- Monthly saving
- $231
- Saved by the time you move
- $11,818
You break even in 21 months and save on lifetime interest as well. This one is worth doing.
Have us check the math- Current payment
- $2,253Principal and interest
- New payment
- $2,023$320,000 over 30 years
- Monthly saving
- $231$2,770 a year
- Net by the time you move
- +$11,818After 6 years, costs included
- Lifetime interest change
- -$1,966Less interest over the full term
- Closing costs
- $4,800Paid at closing
- Break-even date
- Jun 2028If you closed this month
- New loan amount
- $320,000At 6.5% for 30 years
Savings after closing costs
Monthly savings added up, minus what the refinance costs. It crosses zero at the break-even month.
View as a table
| Year | Net savings |
|---|---|
| Closing | -$4,800 |
| Year 1 | -$2,030 |
| Year 2 | +$739 |
| Year 3 | +$3,509 |
| Year 4 | +$6,279 |
| Year 5 | +$9,048 |
| Year 6 | +$11,818 |
| Year 7 | +$14,587 |
| Year 8 | +$17,357 |
| Year 9 | +$20,127 |
| Year 10 | +$22,896 |
Lifetime interest, both ways
Interest still to pay on the current loan against interest plus closing costs on the new one.
Over the full term, refinancing means $2,834 more in interest and costs than keeping the current loan, mostly because the term restarts.
Estimates only. Payments are principal and interest from the standard amortization formula; taxes and insurance do not change when you refinance, so they are left out of both sides. Break-even is closing costs divided by the monthly saving, including any mortgage insurance you would drop.
Estimates only. Results depend on the assumptions you enter and are not a quote, a rate lock or an offer to lend.
How to read the result
Put your current loan in on the left and the new terms on the right. If the break-even lands well inside how long you plan to stay, refinancing is worth a phone call. If it does not, keep your money.
Break-even is the whole answer
If it costs $4,800 and saves $210 a month, you break even at month 23. Staying five years means roughly $7,800 of genuine savings after costs.
Watch the term reset
Dropping a 24-year remaining balance into a fresh 30-year loan lowers the payment but can raise lifetime interest. Compare against a matched term.
Insurance removal counts
If a refinance eliminates an FHA annual premium, add that saving to the monthly figure. It often changes the answer completely.
About this calculator
Title, attorney, appraisal, origination, recording and prepaid interest. For a typical metro Atlanta refinance, $3,500 to $5,500 is a reasonable planning range (sample figures).
Often not. A large share of refinance files qualify for an appraisal waiver, which removes roughly $600 from the cost side of this calculation.
It depends on your balance. On $450,000 half a point is meaningful and break-even can land under two years. On $180,000 the same half point may take five years to pay back.
The other three tools
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Turn the estimate into a letter
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Free consultation. Sample rates and assistance amounts shown on this site are illustrations, not offers.