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Refinance break-even calculator
Refinancing can lower your payment, but closing costs mean it takes time to come out ahead. Enter your current loan and the new offer to see the monthly savings, the break-even point in months, and whether you'd pay more or less interest over the life of the loan.
- Enter your numbersDefaults are realistic examples; replace them with yours.
- Read results instantlyEverything updates as you type. Nothing is sent anywhere.
- Check the assumptionsSee exactly how we calculate, below.
How we calculate
- Compares principal and interest only; escrow for taxes and insurance is assumed unchanged.
- Closing costs are paid in cash, not rolled into the loan.
Understanding your results
If you expect to move or sell before the break-even month, refinancing probably isn't worth it. Watch the lifetime figure too: restarting a 30-year term can lower your payment but increase total interest.
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Frequently asked questions
What is a good break-even period?
Many homeowners look for a break-even within 2–3 years, but the real test is whether you'll stay in the home longer than the break-even.
How much are refinance closing costs?
Typically 2–5% of the loan amount, depending on lender, location and points.
Is a lower rate always worth it?
Not always. If closing costs are high or you'll move soon, you may not recover them.