Mortgage Calculators
Mortgage Refinance Break-Even Calculator
Compare your current loan with a refinance offer and estimate whether the savings justify the costs.
Break-even
month estimate
Net savings
after costs
Decision band
plain-language result
Your refinance estimate
Estimated break-even point
0 months
Current principal & interest$0
New principal & interest$0
Monthly savings$0
Total refinance costs$0
Net savings in home$0
Interest change$0
Cost recovery0%
RecommendationReview
Break-even timeline
Cost recovery
How this refinance calculator works
The calculator estimates your current principal and interest payment, your new principal and interest payment, monthly savings, upfront refinance costs, and the month when savings may recover those costs.
Points are estimated as a percentage of the current loan balance and added to closing costs. The break-even month is calculated as total refinance costs divided by monthly payment savings. Net savings are estimated over the expected time you plan to keep the home.
This tool is for educational estimates only. It does not include taxes, insurance, escrow changes, lender credits, rolled-in costs, cash-out proceeds, credit impacts, prepayment penalties, or tax effects.
Example refinance calculation
If you have a $320,000 balance at 7.25% with 28 years remaining and refinance into a 30-year loan at 6.25% with $6,500 in closing costs, the lower payment may recover costs after several years. The decision depends on how long you keep the home, whether you reset the loan term, and the total cost of the new loan.
Common questions
Is a lower monthly payment always better?
Not always. A lower payment can improve monthly cash flow, but extending the loan term can increase total interest paid over the life of the loan.
Should I include points in refinance costs?
Yes. Discount points are upfront costs paid to change the rate, so they should be included when estimating the break-even point.
What if closing costs are rolled into the loan?
Rolled-in costs still matter because they increase the amount financed and may raise total interest. This version treats costs as upfront for a simpler break-even estimate.