Mortgage Refinance Calculator
Should you refinance to a lower rate? Enter your current loan and the new rate to see your lower payment, the exact month you break even on closing costs, and the quiet trap of a fresh 30-year term — plus the move that captures the rate cut without re-extending your loan.
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How a refinance break-even actually works
A rate-and-term refinance replaces your current mortgage with a new one at a lower interest rate. The lower rate shrinks your monthly payment — but getting it costs money: appraisal, title, origination, and other closing costs, often a few thousand dollars. The whole decision comes down to one question: do the monthly savings add up to those costs before you sell or move?
That tipping point is your break-even month: closing costs divided by monthly savings. Stay past it and the refinance is pure gain; move before it and you paid to refinance and left the savings on the table. This tool marks that exact month on a cumulative-cost chart so you can see where the new loan overtakes the old one.
There's a subtler trap, too — the reset-the-clock problem:
- Lower payment, more total interest: refinancing 27 years left into a fresh 30-year term can raise your lifetime interest even though every payment is smaller — you're just paying for longer.
- The fix: keep sending your old, higher payment on the new loan. The lower rate then shortens the term instead of extending it — you bank the rate cut without re-extending. The calculator shows lifetime interest all three ways.
It also lets you roll the closing costs into the loan or pay them upfront, and compares the cost of staying on your current loan against both the new minimum payment and the keep-your-old-payment plan over the years you expect to stay.
Common questions
- What is the break-even point on a refinance?
- It's how many months your lower payment takes to add up to the closing costs you paid. Closing costs divided by monthly savings — a $5,000 cost recouped at $250/month breaks even in 20 months. Refinancing only pays off if you stay in the home past that month, which this calculator marks for you.
- Can a lower rate actually cost me more in total?
- It can. Refinancing into a fresh 30-year term when you only had 27 years left lowers the payment but stretches the balance over more years, which can raise total lifetime interest. Keep paying your old, higher payment on the new loan and the lower rate shortens the term instead — capturing the rate cut without the extra interest.
- Is anything saved or sent anywhere?
- No. Every number runs in your browser. Nothing you type is uploaded, stored, or shared — and you can export either amortization schedule to CSV with one click.
A lower payment is only worth it if you keep the savings
Taly auto-splits every paycheck across your budget — so the money a refinance frees up actually lands somewhere, instead of quietly disappearing. Your paycheck does the math.