Free Refinance Savings Calculator - Calculate Your Savings
Calculate your potential savings from refinancing your mortgage
Formula & Methodology
This calculator compares the monthly payment and total interest of your current mortgage against a new refinanced loan. It uses the standard mortgage amortization formula to determine payments, and calculates a break-even point by dividing your upfront closing costs by your monthly savings.
- M = P × [r(1+r)^n] / [(1+r)^n - 1]
- Monthly Savings = Current Payment - New Payment
- Break-Even = Closing Costs / Monthly Savings
Worked Example
Using the Refinance Savings Calculator: apply the formula above to your input values. For instance, M = P × [r(1+r)^n] / [(1+r)^n - 1], then Monthly Savings = Current Payment - New Payment. The tool performs each step instantly and shows the result.
Frequently Asked Questions
How much can refinancing save me?
It compares your current payment and interest to a new loan, showing monthly savings and total interest difference.
What costs come with refinancing?
Closing costs like appraisal, origination and title fees, which you should recover through savings before you move or sell.
When is refinancing not worth it?
If you plan to move before reaching the break-even point, the closing costs can outweigh the interest savings.