Refinance break-even calculator

Find out how many months it takes for a lower rate to pay back your closing costs.

Ad slot 1 (responsive display)

How refinance break-even works

Refinancing replaces your loan with a new one, usually at a lower rate, but you pay closing costs upfront. The break-even point is the closing cost divided by your monthly payment savings. If you stay in the home longer than that, you come out ahead.

When refinancing makes sense

It tends to help when the new rate is clearly lower, you plan to stay past the break-even date, and you are not restarting a long term that raises your total interest. Resetting to a new 30-year term lowers the payment but can increase lifetime interest, so compare both numbers.

Frequently asked questions

Should I roll closing costs into the loan?

That avoids paying cash upfront but increases the balance and interest. This calculator assumes you pay closing costs in cash.

Is the result exact?

No. It compares payments and ignores differences in loan balance over time, so treat it as a quick estimate and ask your lender for a Loan Estimate.

More calculators

Auto loan calculator with trade-in: payment with trade-in, tax and fees
Debt payoff calculator: Snowball vs avalanche: debt-free date and interest saved
Mortgage calculator: Full monthly payment with taxes, insurance and PMI
Credit card payoff calculator: Time and interest to zero, or the payment for a target date
Loan comparison calculator: Compare three offers by total cost, not just payment