Refinance Payment Calculator

What Will Your New Monthly Payment Be?

Before committing to a refinance, you need to know your exact new monthly payment — not an approximation, not a marketing figure, but the mathematically correct principal and interest amount for your specific loan parameters. Knowing this number is essential for budgeting, for comparing lender quotes, and for deciding whether the payment reduction justifies the closing costs.

This calculator uses the standard mortgage amortization formula — the same math lenders use on your Loan Estimate. Enter your refinanced loan balance (which may be slightly higher than your current balance if closing costs are rolled in), your new interest rate, and your new loan term. The result updates instantly as you adjust any field.

Who this is for: Homeowners who have received a rate quote and want to verify their new monthly payment, or who are stress-testing different rate or term scenarios. Key assumptions: Result is principal and interest only. Your actual monthly payment will be higher if it includes escrow for property taxes and homeowner's insurance. On FHA loans, add the monthly MIP premium (0.55% annually ÷ 12). Escrow amounts vary by property and location.

Refinance Payment Calculator

RefinanceUSA is not a lender. Results are estimates — actual payments vary by lender and loan type. How we calculate

How Refinancing Changes Your Monthly Payment

Your new monthly P&I payment is determined by three variables: the loan balance, the interest rate, and the loan term. Changing any one of them changes your payment.

Rate Drop — Same Term

The most common refinance scenario: same balance and term, lower rate. A 1% rate reduction on a $350,000 30-year loan saves roughly $220/month.

Term Shortening — 30-Year to 15-Year

Refinancing to a shorter term almost always raises your monthly payment, even when the rate is lower — you're paying the same balance in half the time. The trade-off is dramatically less total interest.

When Refinancing Increases Your Payment

If you're far into your current loan (e.g., 15 years into a 30-year) and you refinance into a new 30-year, you're resetting the clock. Even at a lower rate, your payment might drop slightly — but you'll pay far more total interest. Use the milestones table in this calculator to see exactly where you'd stand after 5 and 10 years.

Understanding the Amortization Milestones

The milestone table shows your remaining balance and cumulative interest paid at 5-year intervals. This tells you two important things:

• Equity build-up: How quickly are you paying down principal vs. interest? In the early years of a 30-year mortgage, over 80% of each payment goes to interest.
• Cost of selling early: If you sell or refinance again before year 5 or 10, your balance hasn't dropped much from origination. Most of what you've paid has been interest.

How to Use the Refinance Payment Calculator

This calculator computes your new principal and interest payment after refinancing, along with a milestone table showing your balance and cumulative interest at 5-year intervals. Here's how to use it effectively.

Step 1 — Enter your new loan balance

Use the actual new loan amount — what you're borrowing, not your current balance. If you're rolling closing costs into the loan, add those to your payoff balance. If you're paying a partial paydown at closing, subtract it. The starting balance directly determines your monthly payment and every milestone in the table.

Step 2 — Enter the new interest rate

Use the note rate from your Loan Estimate — not the APR. The note rate is what calculates your payment. Enter it with two decimal places (e.g., 6.375%). Even a small change in rate has a significant effect on total interest — at $350,000, the difference between 6.375% and 6.50% is about $31/month and over $11,000 in lifetime interest.

Step 3 — Enter the new loan term

If you're refinancing into a fresh 30-year, enter 30. If you're deliberately shortening to a 20-year or 15-year loan to save interest, enter that term. The milestone table will show you exactly how much faster you build equity and pay down principal on a shorter term versus a new 30-year.

Step 4 — Enter your current payment (optional)

If you enter your current monthly P&I, the calculator displays your monthly savings alongside the new payment. Leave it blank to focus solely on the new payment calculation. If you don't know your current P&I, look at your mortgage statement — not the total PITI payment, just the principal and interest portion.

What PITI Means for Your True Payment

This calculator shows P&I only — principal and interest. Your actual monthly housing cost (PITI) is higher and includes:

• Property taxes — typically 1–2% of assessed value annually, escrowed monthly
• Homeowners insurance — varies by location and coverage, escrowed monthly
• PMI or MIP — mortgage insurance if your LTV is above 80% (conventional) or any LTV (FHA)
• HOA dues — if applicable, paid separately but affects affordability

Lenders evaluate your debt-to-income ratio (DTI) using PITI, not just P&I. Your lender's Loan Estimate will show the projected full monthly payment on Page 1 — use that figure for budgeting. Use this calculator for the P&I component and the break-even analysis. See our break-even calculator to factor closing costs into your savings math.

Related Calculators

• Refinance Break-Even Calculator — How many months until monthly savings recover your closing costs?
• Mortgage Savings Calculator — Total interest saved over the full loan life vs. your current loan
• Main Refinance Calculator — Compare multiple lender offers side by side with closing costs and net savings
• HELOC vs Refinance Calculator — Which is cheaper for tapping equity: a HELOC or a cash-out refi?
• No-Closing-Cost Calculator — Pay upfront, roll in, or lender credit — which costs least?
• Not sure if you should refinance? — Refinance Decision Center

Frequently Asked Questions

How do I calculate my new mortgage payment after refinancing?

Use the standard amortization formula M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is your loan balance, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total months (years × 12). This calculator applies that formula automatically.

How much does a 1% rate decrease save per month?

On a $300,000 30-year loan, dropping from 7% to 6% saves about $190/month. On a $400,000 loan the same rate drop saves about $253/month. The exact savings depend on your balance, term, and how much principal you've already paid down.

Does refinancing to a shorter term lower my payment?

Usually no. Refinancing from a 30-year to a 15-year loan typically raises your monthly payment because you're amortizing the same balance over fewer months — even at a lower rate. The benefit is dramatically lower total interest. Enter both scenarios in this calculator to compare.

What is included in the monthly payment shown here?

This calculator shows principal and interest (P&I) only. It does not include property taxes, homeowners insurance, PMI, or HOA dues. Your actual total monthly housing payment will be higher. Check your lender's Loan Estimate for the full PITI estimate.

What is PITI and how much does it add to the P&I payment?

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly housing payment. Taxes and insurance are collected monthly into an escrow account. On a $350,000 home, property taxes typically add $350–$700/month and homeowners insurance $100–$200/month. PMI (if LTV > 80%) adds $50–$150/month. Add these to the P&I payment this calculator shows to estimate your true monthly housing cost.

Will refinancing change my escrow payment?

Refinancing resets your escrow account — the new lender performs a fresh escrow analysis based on current tax assessments and insurance premiums. If your home's assessed value has risen, your new escrow payment may be higher than your current one even as your P&I drops. Also, the new lender typically requires an initial escrow deposit (usually 2–3 months of taxes and insurance) at closing as a separate out-of-pocket cost on top of standard closing fees.

Is the new monthly payment tax deductible?

No — your mortgage payment itself is not deductible. The interest portion of each payment may be deductible if you itemize on your federal return, the loan is secured by your primary or secondary home, and the mortgage balance does not exceed $750,000 (for loans originated after Dec. 15, 2017). After the 2017 Tax Cuts and Jobs Act roughly doubled the standard deduction, the majority of homeowners no longer itemize and therefore receive no tax benefit from mortgage interest. Consult a tax professional if you're in a high-tax state or carry a large mortgage balance.

What is a typical 15-year refinance rate compared to a 30-year?

15-year refinance rates typically run 0.5–0.75% below 30-year rates from the same lender on the same day. If the 30-year rate is 6.75%, the 15-year rate would typically be 6.00%–6.25%. The spread varies with market conditions — during periods of high rate volatility, it can narrow or widen. Always ask your lender to quote both terms simultaneously so you can compare the exact payment and total interest for your specific balance using this calculator.

How much does my monthly payment increase if I switch to a 15-year?

On a $300,000 balance, refinancing from a 30-year at 6.75% to a 15-year at 6.10% increases the monthly P&I by approximately $605/month. On $200,000, the increase is about $400/month. On $400,000, about $807/month. Enter your exact balance and the quoted 15-year rate in this calculator to see the precise payment and the milestone table showing how quickly your balance drops at the accelerated pace.

15-Year Refinance Rate Calculator: Payments, Rates, and Savings

The 15-year refinance is the most common term-shortening choice because it carries the lowest fixed rates in the conforming loan market — typically 0.5–0.75% below 30-year rates from the same lender on the same day. The trade-off is a significantly higher monthly payment, even at the lower rate.

15-Year vs. 30-Year vs. 20-Year: Rate and Payment Comparison

On a $300,000 balance, refinancing from a 30-year at 6.75% to a 15-year at 6.10% raises the monthly payment by $605 — but saves $241,380 in total interest. The payment difference is your "price" for owning the home outright in 15 instead of 30 years.

How to Use This as a 15-Year Refinance Rate Calculator

1. Enter your current balance as "New Loan Balance"
2. Enter your lender's quoted 15-year rate (ask for this specifically — it's typically 0.5–0.75% below the 30-year quote)
3. Set "Loan Term" to 15
4. Enter your current monthly P&I to see the exact payment increase

Run the calculation twice — once at 15 years and once at 30 years with the two different rates your lender quotes — to see the full payment and interest comparison side by side.

When a 15-Year Refinance Makes Sense

• You can comfortably absorb the higher monthly payment (typically $400–$800 more on $200K–$400K)
• You want to eliminate the mortgage before retirement and have 15+ years of working income
• You are refinancing a remaining balance of 15–20 years (e.g., 22 years left) — a 15-year doesn't add much time vs. a 30-year reset
• You want the lowest rate available — 15-year consistently quotes the best fixed rates

Payment Impact Table: Rate Reduction × Loan Term

Your new monthly payment depends on two independent variables: the rate reduction you achieve and the loan term you choose. These interact in non-obvious ways. A rate drop that lowers your payment on a 30-year can actually raise your payment if you switch to a 15-year term — even though the rate on the 15-year is lower.

$350,000 Loan — Monthly P&I by Rate and Term

The table confirms: switching to a shorter term almost always raises the monthly payment — the total interest savings are real and dramatic, but the monthly cash flow impact goes in the opposite direction. Always run both scenarios before assuming a shorter term lowers your bill.

When Extending the Term Makes Sense

Refinancing a 22-year-remaining loan into a new 30-year at a lower rate is a common strategy for borrowers who need immediate cash-flow relief. The tradeoff: 8 extra years of payments. Enter your actual remaining term and balance into this calculator to see the exact payment change — and compare the "Reset to 30-yr" scenario to the "Keep remaining term" option. The full Mortgage Savings Calculator shows total interest for each path so you can make an informed decision.

Cash-Out Refinance: How Borrowing More Changes Your Payment

A cash-out refinance replaces your existing mortgage with a larger loan, and you receive the difference as cash. The payment calculation uses the full new loan balance — not your original balance. This means even with a lower rate, your payment may be higher than your current mortgage if the cash-out amount is large.

The Cash-Out Payment Math

Worked Example: $280K Balance, $60K Cash-Out

Even with a 0.5% rate reduction, the larger balance raises the payment by $161/month. Whether this is worthwhile depends on what you're doing with the $60,000. Paying off 22% credit card debt at $10K balance would save more than $161/month in minimum payments — making the cash-out net-positive on monthly cash flow. Compare the options using our HELOC vs. Cash-Out Calculator to see the full cost picture.