Mortgage Refinance Calculator — Break-Even & Total Interest
See how many months it takes to break even on refinance closing costs, plus what most break-even calculators skip: whether a lower payment from a longer loan term still costs more in total interest.
Monthly payment
Break-even on closing costs
22 months
$6,000 in out-of-pocket closing costs ÷ $275/month saved.
Total interest over each loan's full remaining life
Refinancing costs $28,572 more in total interest over the full life of the loan — even with a lower rate, a longer remaining term can mean paying more in total (CFPB calls this out directly: “that could mean a lower monthly payment, but paying more money in total”).
If you sell or move in 10 years
At this horizon, refinancing is still the cheaper choice by $10,162 — even though the full-life comparison above may favor staying put. This is the CFPB's “are you planning to move soon?” question, made numeric: how long you actually keep the loan can matter more than its full 30-year story.
Estimate only, principal & interest only (no property tax, insurance, PMI, or HOA — those typically don't change from refinancing and are left out of this comparison on purpose). Assumes a standard fixed-rate amortization for both loans and that your current loan's stated remaining term is accurate. Doesn't model discount points, appraisal contingencies, or a cash-out refinance. This is a general estimate, not financial or legal advice — get a real Loan Estimate from a lender before deciding.
Before you refinance: a quick checklist
The CFPB's own guidance flags four situations where refinancing might not make sense, regardless of what the numbers above show:
- Planning to move soon? You might not have time to recoup the closing costs — use the “years you expect to stay” result above to check.
- Has your home's value fallen? It may be harder to find a refinance offer better than your current loan; homeowners who can pay down the balance first may get better options.
- Has your credit score dropped? Compare the actual rate and terms you're offered now, not the rate you got when you first took out the loan.
- Does your current mortgage have a prepayment penalty? Check your loan documents — if it does, that penalty is a real cost of refinancing on top of ordinary closing costs, and this calculator doesn't include it.
Frequently asked questions
Q.The three results seem to disagree — which one should I actually trust?
They're not disagreeing — they're answering three different questions. Break-even tells you how fast the closing costs pay for themselves in monthly cash flow. Total lifetime interest tells you what each loan costs if you keep it until it's fully paid off. The “if you sell or move” result tells you what each loan actually costs over the specific number of years you expect to stay. A refinance can break even quickly and still cost more over a full 30-year life (the CFPB's “resetting the clock” case above) while still being the cheaper choice if you won't be in the home that long — use whichever question matches your actual plans, not automatically the smallest number.
Q.Does rolling closing costs into the loan really cost nothing?
No — it removes the upfront out-of-pocket cost, which is why the break-even result shows “not applicable” in that mode, but you still pay for it: the closing costs are added to your loan balance, so you're paying interest on them for as long as you hold the loan. Compare the total-interest and horizon-cost results with the box checked vs. unchecked to see the actual difference — it's the CFPB's own point about “no-cost” refinancing: the cost moves, it doesn't disappear.
Q.I don't know exactly how many years are left on my current loan — what do I enter?
Check your most recent mortgage statement or your servicer's online portal — most show a remaining term or an amortization schedule directly. If you can't find it, a rough estimate is your original term minus how many years you've been paying (e.g. 22 years left on an original 30-year loan you've had for 8 years) — close enough for this comparison, since the lifetime-interest and horizon-cost results are most sensitive to your new loan's term, which you do enter directly.
Sources
- Consumer Financial Protection Bureau — "Should I refinance?" consumer handout (break-even, the resetting-the-clock tradeoff, and the pre-flight checklist this tool's disclaimers are based on)
- Consumer Financial Protection Bureau — Is there such a thing as a no-cost or no-closing-cost loan or refinancing?