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Debt & Housing

Refinance Break-Even

See how many months it takes for your monthly savings to repay closing costs, then how much you keep over the next ten years.
Break-Even Point
0
Months to recover closing costs
Monthly Savings
$0
Lower payment each month
10-Year Net Savings
$0
After closing costs
Cumulative Savings vs Closing Costs
💡 Worth It Or Not
Estimates only. Compares payments on the remaining term at each rate and assumes closing costs are paid up front, not rolled into the loan. Confirm terms with your lender.
🏛 Predictable Income

Refinance Break-Even Calculator

This calculator answers the only question that matters before you refinance: how long until the lower payment repays the closing costs. It compares your current monthly payment to the new payment at a lower rate, finds the monthly savings, and divides your closing costs by that savings to get the break-even point in months. Refinancing is not free, so a lower rate alone is not enough. You have to stay in the loan long enough to recover what the refinance costs you up front.

To use it, enter your loan balance, your closing costs, your current rate, the new rate you are offered, and your remaining term. The hero number is your break-even point in months. One stat card shows your monthly savings and the other shows your net savings over ten years after subtracting closing costs. The chart plots your cumulative savings rising over time and the moment it crosses the flat closing-cost line, which is your break-even.

Refinancing decisions get made on the monthly payment alone, which is how people pay thousands in costs to save a little each month and then move before they ever break even. If you plan to sell or pay off the loan before the break-even month, refinancing loses money. Knowing your break-even point turns a sales pitch into a clear, defensible decision.