Mortgage Refinance Calculator Guide:
Calculate Your Savings in 2026

How to Calculate Refinance Savings

The Break-Even Formula

Break-Even (months) = Total Closing Costs ÷ Monthly Savings

Example: Closing costs = $6,000. Monthly savings = $300. Break-even = 20 months. If you'll stay in the home longer than 20 months, the refinance saves you money.

Key Numbers to Calculate

  • Monthly Payment Difference: New P&I - Old P&I = Monthly Savings
  • Total Interest Over Life of Loan: Compare total interest on old vs new amortization
  • Equity Impact: If refinancing restarts amortization, you pay more interest early

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