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Refinance break-even calculator

Refinancing only pays off once your monthly savings cover the closing costs. See how many months until you break even— and whether it’s worth it at all.

Loan balance

Current rate

New rate

New term

yrs

Closing costs2–5% of loan

You break even after

1 yr 9 mo

then you save $298.99/mo. Refinance is worth it if you stay past this.

Current payment: $2,097.64
New payment: $1,798.65
Lifetime savings: $101,637

Compare refinance rates→

Break-even ignores taxes and assumes you keep the loan; a lower rate alone doesn’t guarantee savings if you move soon.

How the break-even point is calculated

The break-even point is simply the time it takes for monthly savings to repay your closing costs:

monthly savings = current payment − new payment
break-even (months) = closing costs ÷ monthly savings

If you stay in the home past the break-even month, refinancing saves money; if you leave before it, the closing costs outweigh the savings.

Compare refinance rates

A lower rate shortens your break-even and grows lifetime savings. Comparing several lenders is the single biggest factor in how fast a refinance pays off.

Lender comparison coming soon.

Frequently asked questions

How do you calculate the refinance break-even point?+

Divide your total closing costs by the monthly payment savings from the new rate. The result is the number of months it takes for the savings to cover the cost of refinancing. For example, $6,000 in closing costs with $250/month in savings breaks even in 24 months.

Is refinancing worth it if I'll move before break-even?+

Usually not. If you sell or refinance again before reaching the break-even month, you'll have paid more in closing costs than you saved. Compare the break-even point to how long you plan to stay in the home.

Does a lower interest rate always save money?+

No. A lower rate cuts your monthly payment, but closing costs and extending the term can offset or erase the savings. The break-even point and lifetime savings figure tell you whether the refinance actually pays off.

What are typical refinance closing costs?+

Refinance closing costs usually run 2–5% of the loan amount, covering the appraisal, origination, title and other fees. On a $300,000 loan that's roughly $6,000–$15,000.