Mortgage Calculators
Mortgage Refinance Calculator
Compare your current mortgage with a new one, including closing costs, to see the monthly saving and how long it takes to break even.
Monthly saving
$362.52
- Current payment
- $1,996.52
- New payment
- $1,634.00
- Break-even point
- 12 months
- Lifetime interest difference
- -$30,473
The refinance reduces both the monthly payment and lifetime interest.
How this calculator works
Break-even = closing costs ÷ monthly saving
- closing costs
- fees to complete the new loan
- monthly saving
- old payment minus new payment
Example calculation
Illustrative example — not advice
Worked example — the mortgage refinance calculator as it loads, using the default figures below.
- 01Enter current balance: $280,000.
- 02Enter current rate: 7.25%.
- 03Enter years remaining: 26 years.
- 04Enter new rate: 5.75%.
- 05Enter new term: 30 years.
- 06Enter closing costs: $4,200.
- 07Read the monthly saving from the results panel: $362.52.
Monthly saving: $362.52. Current payment: $1,996.52. New payment: $1,634.00. Break-even point: 12 months. Lifetime interest difference: -$30,473.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Resetting to a longer term can lower the payment while increasing total interest.
- Break-even only makes sense if you expect to stay past that date.
Related calculators
- Mortgage CalculatorEstimate your total monthly mortgage payment and see the amortisation schedule.
- Mortgage Payment CalculatorPrincipal and interest payment on any home loan amount.
- Amortization CalculatorFull interest and principal schedule for any loan.
- Loan-to-Value CalculatorLTV ratio, equity and the gap to the next rate band.
- Closing Cost CalculatorTotal cash needed to close, deposit included.
- Mortgage Affordability CalculatorHow much house your income and debts realistically support.
Terms used here
Frequently asked questions
Is a lower rate always worth refinancing for?
Not if the fees take years to recover or the term restarts. Compare both the break-even month and the lifetime interest figure.
Can I roll the costs into the loan?
Usually yes, but you then pay interest on them for the whole term, which pushes the true break-even further out.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01