Refinance calculator
A smaller payment is not necessarily a cheaper loan. Compare the cash paid and the balance remaining at the same future date.
Work with your numbers
Starting figures are examples, not current market rates or personal advice. All monetary inputs are U.S. dollars. Inputs stay in this browser.
Refinancing is ahead at your horizon
$7,625Illustrative estimate from the inputs above. No taxes or investment outcomes are guaranteed.
- Initial monthly payment reduction
- $322
- New loan amount
- $300,000
First debt-adjusted break-even: month 25. Check the chosen-horizon result; the first crossover need not persist.
Cash and remaining debt after 5 yearsScroll horizontally on small screens.
| Same-horizon comparison | Keep loan | Refinance |
|---|---|---|
| Monthly principal + interest | $2,120 | $1,799 |
| Refinance cash paid upfront | $0 | $6,000 |
| Loan payments + mortgage insurance | $127,220 | $107,919 |
| Interest paid | $100,707 | $87,082 |
| Remaining debt | $273,486 | $279,163 |
| Cash paid + remaining debt | $400,707 | $393,082 |
| Borrowing burden above original debt | $100,707 | $93,082 |
How the numbers reconcile
- New principal = current payoff balance + financed closing costs. Upfront cash = total closing costs − financed closing costs.
- Same-horizon burden = cash paid through that date + debt remaining. Refinance advantage = keep-loan burden − refinance burden. Common original debt cancels, so principal and financed fees are not counted twice.
- The first cumulative break-even month compares this debt-adjusted burden, not just fees divided by the monthly payment reduction.
A worked reference case
Keep a $120,000, 0% loan with 120 months left, or refinance it into 240 months at 0% with $2,000 financed costs. After one year the refinance payment is smaller, but cash paid plus remaining debt is $122,000 versus $120,000. The lower payment did not save $2,000.
Assumptions and limits
Fixed-rate loans, no cash-out or principal curtailment. Include penalties and nonrefundable borrowing costs in total costs; exclude refundable escrow transfers. No skipped-payment windfall, tax deduction, investment returns or automatic PMI cancellation. A payoff quote can differ from the statement balance. Rate examples are illustrative, not market quotes.
Source checked October 6, 2026: CFPB: should I refinance?. Sources inform the definitions; starting figures are illustrative inputs, not sourced market quotes.
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