Refinance Break-Even Calculator
Educational estimate · Not financial advice
Estimate how long it may take monthly savings to recover refinance closing costs.
Enter your numbers and calculate.
How to use this calculator
Enter your current payment, estimated new payment, and closing costs. Compare break-even time with how long you expect to keep the loan.
Formula and assumptions
Break-even months equals closing costs divided by estimated monthly savings.
Example
If closing costs are $4,500 and savings are $150 per month, break-even is about 30 months.
Limitations
- Does not include total interest over the new loan term.
- Cash-out refinance changes the analysis.
- Taxes, insurance, and lender fees vary.
This calculator is for general education only. It is not financial, legal, tax, credit, mortgage, or investment advice.
Related resources
Calculator FAQ
Are the results exact?
No. Results are estimates based on the inputs and simplified assumptions.
What should I do after calculating?
Use the result to compare scenarios, then verify current rates, fees, taxes, and terms before making decisions.