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Refinance Break-even Calculator

Does refinancing pay, and when exactly?

Your loan today

$
%
yrs

The offer

%
yrs
$
yrs

Break-even

a month against of costs

The verdict, on your own timeline

Payment now
Payment after
Lifetime interest change
Net over your stay

Cumulative cost of each path

The refinance line starts above because you paid the costs on day one. Where the lines cross is the break-even.

Interest over the life of each loan

Schedule for the new loan

What the refinanced loan would look like, payment by payment.

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Illustrative figures — here is exactly what this assumes

  • Both loans priced as fixed-rate, fully amortising.
  • Closing costs paid up front rather than rolled into the balance.
  • The comparison is principal and interest only.
  • No cash-out; the new balance equals the current balance.
  • No tax treatment of mortgage interest is modelled.
  • Figures are illustrative and are not a quote or an offer to refinance.

This calculator provides estimates for educational purposes only. Results are not a Loan Estimate, pre-approval, or commitment to lend, and may not reflect taxes, insurance, HOA dues, or other costs. Contact a loan officer for an accurate quote.

Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.

Turn the estimate into a number

A calculator uses averages. A loan officer uses your file.

Property taxes, insurance and mortgage insurance all move by county, by carrier and by credit profile. If you want a figure you can plan around, that is the conversation to have.

  • No credit pull to start a conversation
  • Plain answers, including "this is not the right time"
  • You can stop at any point

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Calculator FAQ

Questions about refinancing

What is the break-even point?

The month at which the accumulated monthly saving has finally repaid what the refinance cost you. Before that month you are down on the deal; after it you are ahead. It is the single most useful number on this page, because it turns "the rate is lower" into "and it pays back in nineteen months".

Why can a lower rate still cost me more?

Because resetting the clock matters as much as the rate does. Refinancing twenty-two remaining years into a fresh thirty lowers the payment and can still raise lifetime interest, since you are borrowing for eight extra years. This page shows the monthly saving and the lifetime interest change separately for exactly that reason.

What should I put in for closing costs?

Lender fees, title, appraisal, recording and any prepaid items that are genuinely a cost of doing the refinance. If the lender is rolling costs into the balance or offering a credit in exchange for a slightly higher rate, model both ways: a no-cost refinance breaks even immediately but saves less each month.

How long do I need to stay for it to be worth it?

Longer than the break-even month. If you might sell or move before then, the refinance costs you money even though the rate is better. That is a question about your plans rather than about the arithmetic.