Refinance Break-Even Calculator
Find the month a refinance is estimated to start saving money instead of costing it.
What This Calculator Does
Divides total refinance closing costs by the monthly payment savings to calculate a break-even month, then compares it against your expected time in the home.
Who Is This For
Owners evaluating a refinance offer, buyers who expect to move within a few years, and anyone who wants a simple pass-or-fail check before paying closing costs again.
How It Works
Enter your current loan balance, your current rate and the newly quoted rate, the years left on the loan, and your estimated closing costs, plus how many years you expect to stay, to see whether you clear break-even in time.
Frequently Asked Questions
How is the break-even point calculated?
Total closing costs divided by monthly savings gives the number of months required to recover the expense; staying beyond that point produces net savings, while leaving sooner does not.
What if closing costs are rolled into the loan?
Rolling costs into the balance avoids an upfront cash payment, but the cost still appears as a larger loan balance and additional interest, so the break-even calculation should still include it.
Does switching to a shorter term change the math?
Yes — a shorter term often raises the monthly payment rather than lowering it, so the benefit there is measured in total interest saved rather than a monthly break-even period. This tool prices both loans over the same remaining term, so a change of term is not modeled here.
Should I refinance if I might move soon?
If a sale is likely before the break-even month, the refinance is unlikely to pay off financially; be conservative with your expected holding period when running the comparison.