Refinance Mortgage Calculator With Closing Costs: See Your True Savings

When considering refinancing, most homeowners look at the lower interest rate and the monthly payment reduction. But one key factor often overlooked is closing costs. These fees can significantly affect how much you actually save and how long it takes to break even.

Why Include Closing Costs in Your Calculation?

Closing costs on a refinance can range from 2% to 5% of your loan amount. Without factoring them in, you might think you’re saving money sooner than you actually are. Our Refinance Mortgage Calculator lets you add closing costs, so you get an accurate picture of your true savings.

How to Use the Calculator for Closing Costs

Enter your current loan balance, interest rate, and years remaining.
Input your proposed new loan terms, including the new interest rate.
Add your estimated closing costs in the provided field.
Click “Calculate” to instantly see your adjusted monthly payment, total interest savings, and break-even point.

Example: Realistic Refinance Savings

Suppose you owe $250,000 on a 4.5% mortgage with 20 years remaining. Refinancing to 3.5% could save you about $200/month. However, if your closing costs are $5,000, your break-even point will be around 25 months — meaning you must stay in your home for just over two years to realize true savings.

When Is It Worth It?

Refinancing makes sense if your long-term interest savings outweigh the upfront costs and you plan to remain in the home past the break-even point. If you expect to sell or move soon, the savings may not justify the fees.

Start Calculating Now

Use our Refinance Mortgage Calculator with Closing Costs to find out if refinancing is the right financial move for you. By factoring in fees upfront, you can make a confident, informed decision.