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Refinance Savings Calculator — Is Refinancing Worth It?

Calculate your monthly savings, break-even point, and total lifetime savings from refinancing your mortgage. See whether refinancing makes sense at today's rates.

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.

Monthly Savings
$118
Monthly Savings
$118
Break-Even Point
25 months
Net Savings (life of loan)
$32,478
Monthly payment comparison
Diagnostic

The differential is $118 between these options.

Small rate or term differences compound. Don't leave the gap on the table.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    How much will refinancing actually save you, net of closing costs?

  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
Compare Mortgage RatesMove from calculation to current product options.
Rate Trend
Track mortgage ratesUse market context before you decide when to act.
Guide
HELOC vs Home Equity Loan vs Cash-Out Refi: Which Home Equity Strategy Wins?HELOC: variable rate, flexible draw. Home equity loan: fixed rate, lump sum. Cash-out refi: replaces your mortgage with a larger one. Here's how to choose the right home equity strategy in 2026.
Money Map
Add this scenario to Money MapTurn the result into a saved opportunity or plan item.
Alert
Create a rate alertWatch the market instead of checking manually.

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

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

Refinancing saves money only if you stay in the home long enough to recoup closing costs. A $3,000 savings in closing costs with a $150/month payment reduction takes 20 months to break even. This calculator finds your exact number.

How to Use It

  1. 1Enter your current loan balance, rate, and remaining term
  2. 2Enter the new rate, closing costs, and new term
  3. 3See monthly savings and break-even point in months
  4. 4See total lifetime savings if you keep the loan full term
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Refinance Break-Even CalculatorMortgage Calculator15 vs 30-Year Mortgage Calculator
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Refinance Savings Calculator — Is Refinancing Worth It? | SwitchWize