Loan Refinance Break-Even Calculator
Find how many months until refinancing pays for itself.
Enter your values
ⓘ Live results
Results
- Monthly savings
- $250.00
- Break-even point
- 18 months
- Worth it if you stay past
- 1.5 years
- Net savings over your planned stay
- $16,500.00
Quick answer
The break-even point is the number of months of payment savings needed to cover the closing costs of refinancing.
Break-even months = closing costs / monthly savings
How to use the Loan Refinance Break-Even Calculator
- 1Enter your current and new monthly payments.
- 2Enter total closing costs for the refinance.
- 3Compare the break-even period to how long you plan to keep the loan.
Worked example
Using the values the calculator loads with:
Inputs
- Current monthly payment2100 $
- New monthly payment1850 $
- Refinance closing costs4500 $
- Years you plan to keep the loan7 years
Results
- Monthly savings$250.00
- Break-even point18 months
- Worth it if you stay past1.5 years
- Net savings over your planned stay$16,500.00
Frequently asked questions
What if I move before break-even?
You lose money on the refinance overall, since the savings never caught up to the upfront costs.
Should I roll closing costs into the loan?
That raises the balance and interest paid over time, so recompute break-even using the higher payment.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.