Refinance Break-Even Calculator

Find your new payment, how long it takes to earn back closing costs, and whether a refinance saves money overall.

Current Loan
$
New Loan
$
Paying Closing Costs
Fractions and decimals both work.
Months to Break Even
Current payment
New payment
Monthly savings
Interest left on current loan
Interest on new loan
Lifetime difference
Break-Even Date

Refinance Offers

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When Does Refinancing Pay Off?

The break-even point is how long the lower payment takes to make back the closing costs. Stay in the home (and the loan) longer than that and the refinance comes out ahead on monthly cash flow.

Break-even (months) = closing costs ÷ monthly payment savings

Monthly savings aren't the whole story. Stretching a loan with 27 years left back to 30 years lowers the payment partly by adding three years of payments, so the page also compares the total interest you'd still pay on each loan.

Worked Example

Tips

If you roll closing costs into the new loan, you pay interest on them too. A shorter new term (for example 20 or 15 years) often gives a smaller monthly saving but a much bigger lifetime saving. Get a Loan Estimate to see exact closing costs.