UtilibyWritten by the Utiliby editorial team · Last updated October 15, 2026 · Rules and formulas reviewed October 2026
What this free online refinance closing costs calculator does
The interest rate gets the attention, but closing costs decide whether a refinance pays. A lower rate saves a little every month, and the closing costs are what you pay on day one to get it. If the costs are higher than expected, the break-even moves out by months or years. This free online refinance closing costs calculator builds the estimate line by line, so you can see where the money goes before you apply.
It adds up lender fees, third-party fees and discount points into your true cost, shows prepaid items separately as part of your cash to close, and converts the total to a percentage of the loan and a cost per month of your stay. A second tab compares paying 0, 1, 2 or 3 points with a no-closing-cost loan, so you can see which option costs least for the years you plan to keep the loan. Everything runs in your browser, so your numbers stay private.
How to use the closing costs calculator
- Enter the loan. Use the new loan amount, the rate you were quoted before any points, the term and how long you expect to stay.
- Fill in the fees. Replace the example figures with those from your Loan Estimate or a lender's quote. Percentage fields apply to the loan amount.
- Add points if you are considering them. Enter how many and the rate cut per point you were offered.
- Enter the prepaid items. Add days of prepaid interest, your monthly taxes and insurance and the months of escrow the lender will collect.
- Read the results. See the total fees, the percentage of the loan, the cash to close and the cost per month of your stay.
- Compare the options. Open the Points and no-cost options tab to see total cost over your stay for each choice.
What the fees are
| Group | Typical items | Notes |
|---|---|---|
| Lender fees | Origination, underwriting, processing, discount points | Negotiable; compare lenders |
| Third-party fees | Appraisal, credit report, title search, lender's title insurance, settlement or attorney, recording and transfer, flood certificate | Some can be shopped for; some are set by the state or county |
| Prepaid items | Interest to month end, tax and insurance deposits | Your own money moved into escrow |
Costs vary a lot by state. Some states charge transfer or mortgage recording taxes, and some require an attorney. That is why a single percentage can be misleading, and why this calculator asks for each fee.
Discount points: when they pay off
A discount point costs 1% of the loan and buys a lower rate. How much lower depends on the lender and the market, and a quarter of a point is often cited, so treat the 0.25 default as an example. The question is always the same: how long until the lower payment repays the extra cost? Divide the cost of the points by the monthly saving. If you will keep the loan longer than that, the points pay off.
Worked example. On a 300,000 loan, one point costs 3,000. If it lowers the rate from 6.50% to 6.25%, the payment falls by about 49 a month, so the break-even is about 62 months, just over five years. Stay seven years and the point pays for itself. Move in three and it does not. The options table runs this calculation for 0 to 3 points.
No-closing-cost refinances and lender credits
A no-closing-cost refinance does not remove the costs. The lender covers them in exchange for a higher rate, or the costs are added to your loan. That can be the right choice when you expect to move or refinance again within a few years, because you avoid paying for a long-term benefit you may not keep. It is a poor choice when you will stay a long time, because the higher rate costs more every month.
Enter the rate premium you were quoted in the no-closing-cost field. The options table then shows the total cost of that option against paying fees and points, over the years you plan to stay.
Prepaid items and cash to close
On closing day you pay fees, but you also pay prepaid items: interest from the closing date to the end of the month, and deposits to the escrow account for property tax and insurance. Prepaid items are not a cost of the refinance, because they cover expenses you would pay anyway. They do, however, increase the cash you need. The calculator shows cash to close as fees plus prepaids. If you already have an escrow account, your old lender refunds the old balance after your loan is paid off, which can offset the new deposits.
How to lower your closing costs
- Compare Loan Estimates from at least three lenders. Look at lender fees, not only the rate.
- Ask the lender to waive or reduce the origination, processing or underwriting fee.
- Shop for title and settlement services where the Loan Estimate allows it.
- Close near the end of the month to cut prepaid interest.
- Ask whether the lender offers a credit or a reduced fee for existing customers.
- Consider rolling costs in if cash is tight, but compare the extra interest.
Using the Loan Estimate
Within three business days of your application, the lender must give you a Loan Estimate. It lists the loan terms, projected payments and all closing costs in a standard layout, which makes comparison easy. Some fees cannot increase at closing, others can rise by a limited amount and some may change, so ask which are which. Compare the final Closing Disclosure, which you receive at least three business days before closing, with the Loan Estimate and ask about any differences.
Common mistakes
- Treating prepaid items as a cost. They are not part of the break-even.
- Judging by the rate alone. A slightly lower rate with high fees can cost more.
- Buying points and moving soon.
- Choosing no-closing-cost and then staying for a decade.
- Using the default figures instead of your quote.
Related refinance tools and guides
This calculator is one of a set of free refinance tools on Utiliby. Depending on what you are deciding, these may help next.
- Mortgage Refinance Calculator: test whether the costs pay back.
- Refinance Break-Even Calculator: find the payback month.
- FHA, VA and USDA Streamline Refinance Calculator: for streamline loans with program fees.
For background reading:
Privacy, accuracy and limits
The calculator runs entirely in your browser. The figures you enter are not sent to a server and are not stored, and reloading the page returns the example. The default fees are illustrations. The points comparison assumes a fixed rate, level payments and that you keep the loan for the years you enter. Real fees, rates and rules vary, so confirm every figure with a Loan Estimate.
Frequently asked questions
How much are refinance closing costs?
They are commonly quoted at around 2% to 6% of the loan amount, depending on the lender, state and loan size. On a 300,000 loan that is roughly 6,000 to 18,000. Your Loan Estimate shows the exact amounts.
What is included in refinance closing costs?
Lender fees such as origination and underwriting, third-party fees such as the appraisal, credit report, title search and insurance, settlement and recording charges, and any discount points. Prepaid interest and escrow deposits are collected at the same time.
What is the difference between closing costs and prepaid items?
Closing costs are fees you pay for the loan. Prepaid items are your own future expenses, such as interest and tax and insurance deposits, paid in advance into escrow. Only the fees and points count as a cost when you work out the break-even.
What are discount points?
One point costs 1% of the loan and usually lowers your rate by a small amount, which varies by lender and market. Points make sense only if you keep the loan long enough for the lower payment to repay them.
How do I know if buying points is worth it?
Divide the cost of the points by the monthly payment saving. The result is the number of months to break even. If you will keep the loan longer than that, the points pay off. The options table shows this for 0 to 3 points.
What is a no-closing-cost refinance?
The lender pays the fees through a credit and you accept a higher interest rate, or the fees are added to the loan. You pay less on the day, but you pay more each month, so compare total cost over the years you will stay.
What is a lender credit?
A lender credit is money the lender applies to your costs in return for a higher rate. It is the opposite of buying points. Enter a rate premium to see the true cost of the credit.
Can I roll closing costs into the loan?
Often yes. Rolling them in avoids cash at closing but increases the loan, so the payment is higher and you pay interest on the costs. The refinance calculator on this site shows the effect.
Which closing costs can I shop for?
Lender fees can be compared between lenders. For some third-party services, such as title and settlement, the Loan Estimate shows which you may shop for. Comparing a few quotes can lower the total.
Can closing costs go up after the Loan Estimate?
Some fees cannot increase from the Loan Estimate, some can rise by a limited amount, and some can change. Ask your lender which of your fees are which, and compare the Closing Disclosure with the Loan Estimate.
Are refinance closing costs tax deductible?
Generally most are not deducted at once. Points paid on a refinance are normally deducted over the life of the new loan under current US rules. Ask a tax adviser about your case.
How much cash do I need at closing?
Closing costs plus prepaid items, less any credits or costs you roll into the loan. The results show the total so you can plan, and you can lower it by rolling costs in or taking a lender credit.
Are closing costs the same for a cash-out refinance?
They are similar, but lenders can charge more for cash-out loans, and the loan is larger, so percentage-based fees are larger. Enter your own figures to see the effect.
What is prepaid interest?
It is the interest from the closing date to the end of that month, collected up front. It depends on the day of the month you close, which is why many people close near the end of a month to pay less.
How accurate are the default figures?
They are only illustrative. Replace every field with the amounts on your Loan Estimate, or a lender's quote, for a reliable result.
Is my information private?
Yes. The calculator runs in your browser. Nothing you enter is sent to a server, saved or shared, and reloading the page resets it.
Is this closing costs calculator free?
Yes. It is a free online calculator with no sign-up, trial or limit. You can print or download the results.
Sources and further reading
- Consumer Financial Protection Bureau, "What are closing costs?" and "What is a Loan Estimate?" (consumerfinance.gov/ask-cfpb).
- Consumer Financial Protection Bureau, "What are discount points and lender credits and how do they work?" (consumerfinance.gov/ask-cfpb).
- Consumer Financial Protection Bureau, Know Before You Owe: Loan Estimate and Closing Disclosure (consumerfinance.gov).
- Internal Revenue Service, Publication 936, Home Mortgage Interest Deduction, on points paid on a refinance (irs.gov).
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.