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Refinance Savings Calculator — Is Refinancing Worth It?

Estimate payment break-even and interest savings for same-remaining-term fixed-rate mortgage scenarios after entered closing costs.

Quick answer: Refinancing saves money when the lower payment or lower interest cost outweighs closing costs before you sell or refinance again. Break-even timing is the key test.

SWReviewed by SwitchWize Research Desk · Last reviewed July 17, 2026
Monthly Savings
$223
Monthly Savings
$223
Payment Break-Even Point
14 months
Remaining Interest — Current Loan
$408,947
Remaining Interest — New Loan
$342,004
Monthly payment comparison
Net Financing-Cost Savings
$63,943
Cost of Waiting 3 Months to Refinance
$669
Cost of Waiting 6 Months to Refinance
$1,339
Diagnostic

The new same-term payment is $223 lower per month.

Net financing-cost savings after entered closing costs are $63,943. Waiting 6 months to refinance costs about $1,339 in payments you didn't have to make; compare official Loan Estimates before acting.

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What would change this: refinancing breaks even (net financing-cost savings cross zero) at a new rate of 7.21%.

What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare remaining interest and entered closing costs for equal-remaining-term fixed-rate mortgage scenarios.

  2. 2

    Compare the result against current market-rate options

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub
Compare
You could gain ~$223/yr — compare nowMove from calculation to current product options.
Rate Trend
Track mortgage ratesUse market context before you decide when to act.
Guide
The Homeowner's Money Playbook: Everything After You Buy (2026)Every guide tells you how to buy a house. Almost none tells you how to run one. Closing is the start of a 30-year financial contract that is mostly interest in the early years, and the owners who pay attention win back thousands: refinancing past break-even, killing PMI, reshopping insurance, appealing property taxes, and getting the payoff-versus-invest call right.
Money Map
Add this scenario to Money MapTurn the result into a saved opportunity or plan item.
Alert
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About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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30-yr fixed · 15-yr fixed · FHA · VA · ARM — ranked by APR
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Mortgage rates shown on SwitchWize compare pages include loan type, assumed FICO, LTV, and points. Representative only — verify all terms directly with the lender. Advertising disclosure

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Frequently Asked Questions

Everything you need to know.

When should I refinance my mortgage?
The old rule was 'when you can save 1%+ on your rate.' A better rule: when your break-even point (closing costs ÷ monthly savings) is fewer months than you plan to stay in the home. A 0.5% rate reduction with $2,000 closing costs and $150/month savings breaks even in 13 months.
Should I refinance to a shorter term?
Refinancing a 30-year to a 15-year saves enormous total interest — typically $80,000–$120,000 on a $300,000 loan. But payments increase. Do this only if the new 15-year payment is comfortably under 28% of gross income.
Is the Refinance Savings Calculator — Is Refinancing Worth It? free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Refinance Savings Calculator — Is Refinancing Worth It? affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare mortgage rates, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Payment break-even and economic savings are different. This scoped model compares equal remaining terms and cash-paid closing costs; obtain comparable Loan Estimates before acting.

How to Use It

  1. 1Enter balance, current contractual rate, and remaining term
  2. 2Enter the replacement contractual rate and cash-paid closing costs
  3. 3Review payment break-even and remaining-interest difference
  4. 4Confirm excluded taxes, prepaid items, points, and financed costs in the Loan Estimates
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