Refinance Savings Calculator
See whether refinancing actually pays off. Enter your current balance and payment, the new rate and term, and your closing costs — the calculator shows your new monthly payment, monthly savings, and the break-even point in months.
By Sunrise Lending
What break-even means
Calculate your refinance savings
How to think about a refinance
A rate-and-term refinance replaces your existing loan with a new one at a different rate, term, or both. The monthly savings come from a lower rate, a longer term, or both — but every refinance has closing costs, so the real question is how long it takes for the savings to outrun those costs.
That is the break-even point. Below it, you have not yet recovered what you spent to refinance. Above it, the savings are pure benefit. If you expect to sell or refinance again before the break-even, the math may not work — even with a lower payment.
Resetting the term matters too. Refinancing a loan you have paid down for eight years into a fresh 30-year term lowers the payment but can increase total interest over the life of the loan. Matching the new term to your remaining term, or choosing a shorter one, keeps the lifetime cost in check. A licensed officer can model both paths.
Common questions
- How is the break-even point calculated?
- Break-even months = closing costs ÷ monthly savings. If refinancing costs $6,000 and lowers your payment by $300/month, you break even in 20 months. Past that point the refinance has paid for itself and the savings are net positive.
- Does this include taxes and insurance?
- No. The calculator compares principal & interest (P&I) only, because that is what changes with the rate and term. Taxes, insurance, and any mortgage insurance are excluded so the savings figure isolates the financing change. Enter your current P&I, not your full PITI payment.
- Why does my new payment sometimes go up?
- Shortening the term — say from 30 years to 15 — usually raises the monthly payment even when the rate drops, because you are paying the balance off faster. That can still be a smart move: you pay far less total interest. The calculator flags when the new payment exceeds the current one.
- What closing costs should I enter?
- Include lender fees, title and escrow charges, appraisal, recording, and any points you pay to buy down the rate. Some borrowers roll these into the loan balance instead of paying cash — that raises the balance and changes the math, so model it with a licensed officer.
- Is a faster break-even always better?
- A shorter break-even reduces the risk that you sell or refinance again before recovering costs. But the total benefit depends on how long you keep the loan. If you plan to stay well past the break-even, even a longer payback can produce large lifetime savings.
See your real refinance numbers with a Sunrise officer
The calculator estimates the savings. A licensed officer confirms your rate, closing costs, and break-even before anything formal moves.
Related resources
Refinance estimates are for educational purposes only and compare principal & interest only. They exclude taxes, insurance, mortgage insurance, and escrow changes. Actual rate, term, and closing costs are determined by the lender after full underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.