Refinance Break-Even Calculator
See how many months of lower payments it takes to recoup the closing costs of refinancing.
Inputs
Result
Break-even
18 mo
Monthly savings $350.00 · breaks even 2027-11-21
Visual breakdown
Monthly savings
$350.00
Break-even
18 mo
Closing costs
$6,000.00
Date
2027-11-21
Formula
Break-even (months) = closing costs ÷ (current payment − new payment). If the result is longer than you'll stay in the home, refinancing usually isn't worth it.
Example
$2,200 → $1,850 with $6,000 closing costs → ≈ 18 months to break even.
Related: Mortgage · Extra payments · Closing costs
How to use
- Enter your current monthly P&I payment.
- Enter the new payment quoted by the lender.
- Enter total closing costs for the refinance.
When it's useful
- Deciding whether to lock in a lower rate.
- Comparing a no-closing-cost refi (higher rate) vs traditional.
- Checking if break-even fits your remaining stay.
Common examples
$300/mo savings, $6,000 costs
Break-even at 20 months.
Plan to move in 18 mo
Likely not worth refinancing.
Long stay + lower rate
Refinance often pays off well past break-even.
Frequently asked
Does it account for a longer new term?
No — extending your term can lower payments but increase total interest. Use an amortization calculator alongside this.
What about cash-out refis?
Cash-out changes the principal — this calculator only compares pure payment savings vs upfront cost.
Rule of thumb?
Many people aim for a break-even under 24–36 months and a stay longer than that.
People also calculate
More money & work →Estimates only — not financial advice.