Refinance Break-Even Calculator
How many months until a refinance pays for itself.
Enter your values
Results update instantly as you type — no submit needed.
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.
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.