Refinance Break-Even Calculator

The Refinance Break-Even Calculator answers the most important question when considering a mortgage refinance: how long until the savings from a lower rate offset the upfront closing costs? Refinancing typically costs 2%-5% of the loan amount in closing costs (title insurance, appraisal, origination fees, etc.), and those costs must be recovered through monthly payment reductions before the refinance pays off. The break-even point is calculated by dividing total closing costs by the monthly payment savings. If you plan to stay in your home longer than the break-even point, the refinance is financially beneficial. If you plan to sell or move before then, keeping your current loan is smarter. This calculator also models rolling closing costs into the loan balance — a common practice — and shows how that affects your break-even timeline. It compares your current loan terms directly against the proposed new loan, accounting for the fact that a new loan may have a different remaining term, and shows the total cost comparison over the remaining life of both loans.