Can I use this calculator if I have an adjustable-rate mortgage?

The tool is designed for fixed-rate inputs; adjustable-rate loans may require additional factors like rate caps and future index changes, which are not built into the default fields.

What counts as 'points' in the new loan section?

Points refer to upfront fees paid to the lender at closing to lower the interest rate; one point typically equals 1% of the loan amount.

Does the calculator factor in closing costs?

Yes, there is a fees field where you can enter estimated closing costs; the output then subtracts those costs from the total interest savings to show a net benefit.

How accurate are the savings numbers produced by the tool?

The numbers are estimates based on the rates and terms you enter; actual lender offers may differ based on your credit score, debt-to-income ratio, and current market conditions.

Loans & MortgagesTool Review

Refinance Calculator

Provided byNerdWallet Financial Calculatorsnerdwallet.com

Calculates monthly and total savings from refinancing an existing mortgage.

One of 3 options for Refinance Calculator

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Screenshot of Refinance Calculator on NerdWallet Financial Calculators — nerdwallet.comOpen the live tool →

About this tool

What Refinance Calculator does

A refinance calculator that estimates monthly and total savings when replacing an existing mortgage with a new loan. Users enter their current balance, interest rate, remaining term, and the proposed new loan’s term, rate, and fees to see a side-by-side comparison of payment schedules and overall cost differences. The output highlights whether refinancing would lower monthly payments, reduce total interest, or shorten the loan duration, helping borrowers assess if the move makes financial sense. NerdWallet’s version distinguishes itself by pairing the calculation with clear, plain-language explanations of each input field and a breakdown of closing-cost considerations. While other calculators focus purely on numbers, this interface walks the user through the trade-offs of extending or shortening the loan term, making it easier to weigh long-term savings against upfront fees.

Step by step

How to use the NerdWallet Financial Calculators Refinance Calculator

1
Enter your current mortgage balance and original interest rate
2
Input the remaining term and monthly payment on your existing loan
3
Enter the desired new loan term, interest rate, and any estimated points or fees
4
Review the side-by-side comparison of current versus refinanced monthly payments and total interest savings

Is it right for you

Best for

Homeowners with at least a year remaining on their mortgage who want to lower monthly payments or reduce total interest, especially those comfortable weighing closing costs against long-term savings.

Limitations

Estimates are based on input rates and fees and do not guarantee actual lender terms
Does not include private mortgage insurance (PMI) changes or tax implications
Results are illustrative; actual refinancing costs and rates vary by lender and credit profile

Questions

Refinance Calculator FAQ

Can I use this calculator if I have an adjustable-rate mortgage?: The tool is designed for fixed-rate inputs; adjustable-rate loans may require additional factors like rate caps and future index changes, which are not built into the default fields.
What counts as 'points' in the new loan section?: Points refer to upfront fees paid to the lender at closing to lower the interest rate; one point typically equals 1% of the loan amount.
Does the calculator factor in closing costs?: Yes, there is a fees field where you can enter estimated closing costs; the output then subtracts those costs from the total interest savings to show a net benefit.
How accurate are the savings numbers produced by the tool?: The numbers are estimates based on the rates and terms you enter; actual lender offers may differ based on your credit score, debt-to-income ratio, and current market conditions.

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