Refinance Break-Even Calculator
How many months until a refinance pays for itself.
Enter your values
ⓘ Live results
Results
- Break-even point
- 27 months
- Monthly saving
- $195.78
- New payment
- $1,791.63
- Saving over remaining term
- $55,881.81
Quick answer
The refinance break-even point is closing costs divided by the monthly payment saving; refinancing pays off only if you stay past that point.
Break-even months = closing costs ÷ monthly saving
How to use the Refinance Break-Even Calculator
- 1Enter your balance, current rate and years left.
- 2Add the new rate on offer and closing costs.
- 3Read how long until the refinance pays for itself.
Worked example
Using the values the calculator loads with:
Inputs
- Current balance280000 $
- Current rate7.2 %
- New rate6.1 %
- Years remaining26 years
- Closing costs5200 $
Results
- Break-even point27 months
- Monthly saving$195.78
- New payment$1,791.63
- Saving over remaining term$55,881.81
Frequently asked questions
Is a lower rate always worth it?
Only if you stay past break-even and don't reset the term. Refinancing 26 years left into a fresh 30 can raise lifetime interest.
Can closing costs be rolled in?
Yes, but rolling them into the balance means paying interest on them for the life of the new loan.
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.