Refinance Calculator
Updated on 20 Oct 2026 · Checked by Aotob
Refinancing $300,000 from 7% to 6% saves $191 a month.
With $5,000 in costs, you break even in 2 yrs 3 mos. Over the full term you save $57,042 in interest after costs.
You save each month
$191/month
It pays off after 2 yrs 3 mos. Stay longer than that and refinancing saves money.
Show the working
Now: 300,000 at 7% over 27 years = 2,063.44 a month
New: 300,000 at 6% over 27 years = 1,871.96 a month
Break-even = 5,000 ÷ 191.49 = 27 months
Saving at other new rates
| New rate | Payment | Saving a month | Break-even |
|---|---|---|---|
| 4.5% | 1,601 | 462 | 11 mos |
| 5% | 1,689 | 374 | 1 yr 2 mos |
| 5.5% | 1,779 | 284 | 1 yr 6 mos |
| 6% | 1,872 | 191 | 2 yrs 3 mos |
| 6.5% | 1,967 | 97 | 4 yrs 4 mos |
Questions people ask
When is refinancing worth it?
When you stay in the home longer than the break-even point, and the lifetime interest after costs goes down. A lower payment from a longer term alone can cost you more overall.
What costs should I include?
Lender and arrangement fees, valuation or appraisal, legal or title costs, and any early repayment charge on your current loan. In the US closing costs are often 2% to 5% of the loan.
Should I keep the same term?
Use the years left on your current loan as the new term to compare like with like. A shorter term raises the payment but cuts interest the most.
Updated 20 Oct 2026Source: standard mortgage amortization formulaChecked by AotobAn estimate, not financial adviceReport an issue