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Mortgage Refinancing Rates Calculator

This Mortgage Refinancing Rates Calculator helps you estimate your new monthly payment after refinancing and calculate the break-even point to determine if refinancing is a smart financial decision.

Mortgage Refinance Payment and Break-even Calculator

Input Fields
P
$
Enter your remaining loan balance
$
Enter your current monthly mortgage payment
%
Enter the new interest rate after refinancing
years
Enter the new loan term
$
Enter the total cost of refinancing
If enabled, the result will update automatically when you change any value.

Mortgage Refinancing Formulas

Formula
\[ \text{New Payment} = \frac{P \times r}{1 – (1 + r)^{-n}} \] \[ \text{Break-even Months} = \frac{\text{Refinance Costs}}{\text{Monthly Savings}} \]

Where:

  • $$P$$ = Loan principal (remaining loan amount)
  • $$r$$ = New monthly interest rate (annual rate divided by 12)
  • $$n$$ = New loan term in months
  • $$New Payment$$ = New monthly mortgage payment after refinancing
  • $$Refinance Costs$$ = Total costs associated with refinancing
  • $$Monthly Savings$$ = Difference between old and new monthly payments
  • $$Break-even Months$$ = Time needed to recover the refinance costs through monthly savings


The Mortgage Refinancing Rates Calculator helps you determine if refinancing your mortgage makes financial sense by estimating the new payment and how long it will take to recover your refinancing costs. It’s essential for homeowners looking to reduce monthly payments or save on interest.

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