Refinance Break-Even Calculator
Find the break-even point on a refinance.
When a refinance pays off
Refinancing has upfront closing costs, so it only pays once the monthly savings recoup them. Divide closing costs by monthly savings: $4,000 in costs saving $200 a month breaks even in 20 months.
If you expect to sell or refinance again before the break-even month, the new loan costs more than it saves — the single most useful thing to know before paying closing costs.
Beyond break-even
If you may move before break-even, refinancing can cost more than it saves. The figures you enter stay on your device and are never uploaded.
Frequently asked questions
How is the break-even point found?
Closing costs ÷ monthly savings, rounded up. Going from $2,400 to $2,125 saves $275 a month, so $5,200 in costs is recovered in 19 months.
Why is the first-year net negative?
In the first year you save $3,300 but paid $5,200 up front, a net of −$1,900. It turns positive once you pass the break-even month.
What else should I consider?
How long you will keep the loan, and whether the new term restarts the clock. A lower payment over a fresh 30-year term can cost more interest overall.
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