Loan Refinance Break-Even Calculator
Find how many months until refinancing pays for itself.
Enter your values
Enter the current monthly payment in $.
Enter the new monthly payment in $.
Enter the refinance closing costs in $.
Enter the years you plan to keep the loan in years.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Monthly savings
- $250.00
- Break-even point
- 18 months
- Worth it if you stay past
- 1.5 years
- Net savings over your planned stay
- $16,500.00
Quick answer
The break-even point is the number of months of payment savings needed to cover the closing costs of refinancing.
Break-even months = closing costs / monthly savings
At a glance
| What it does | Find how many months until refinancing pays for itself. |
|---|---|
| Category | Finance |
| Inputs needed | Current monthly payment, New monthly payment, Refinance closing costs, Years you plan to keep the loan |
| Main output | Monthly savings |
| Formula | Break-even months = closing costs / monthly savings |
| Cost | Free — no sign-up, no download |
How to use the Loan Refinance Break-Even Calculator
- 1Enter your current and new monthly payments.
- 2Enter total closing costs for the refinance.
- 3Compare the break-even period to how long you plan to keep the loan.
Inputs explained
- Current monthly payment($)
- Enter the current monthly payment in $.
- New monthly payment($)
- Enter the new monthly payment in $.
- Refinance closing costs($)
- Enter the refinance closing costs in $.
- Years you plan to keep the loan(years)
- Enter the years you plan to keep the loan in years.
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.
What do I need to enter into the Loan Refinance Break-Even Calculator?
Just 4 values: current monthly payment, new monthly payment, refinance closing costs, years you plan to keep the loan. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Loan Refinance Break-Even Calculator work out the answer?
The break-even point is the number of months of payment savings needed to cover the closing costs of refinancing. It applies the formula Break-even months = closing costs / monthly savings and shows the working so you can check each step by hand.
Is the Loan Refinance Break-Even Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.