Refinance Break-Even Calculator
How many months until a refinance pays for itself.
Enter your values
Enter the current balance in $.
Enter the current rate in %.
Enter the new rate in %.
Enter the years remaining in years.
Enter the closing costs in $.
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.
- Break-even point
- 27 months
- Monthly saving
- $195.78
- New payment
- $1,791.63
- Saving over remaining term
- $55,881.81
Quick answer
The refinance break-even point is closing costs divided by the monthly payment saving; refinancing pays off only if you stay past that point.
Break-even months = closing costs ÷ monthly saving
At a glance
| What it does | How many months until a refinance pays for itself. |
|---|---|
| Category | Finance |
| Inputs needed | Current balance, Current rate, New rate, Years remaining, Closing costs |
| Main output | Break-even point |
| Formula | Break-even months = closing costs ÷ monthly saving |
| Cost | Free — no sign-up, no download |
How to use the Refinance Break-Even Calculator
- 1Enter your balance, current rate and years left.
- 2Add the new rate on offer and closing costs.
- 3Read how long until the refinance pays for itself.
Inputs explained
- Current balance($)
- Enter the current balance in $.
- Current rate(%)
- Enter the current rate in %.
- New rate(%)
- Enter the new rate in %.
- Years remaining(years)
- Enter the years remaining in years.
- Closing costs($)
- Enter the closing costs in $.
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.
What do I need to enter into the Refinance Break-Even Calculator?
Just 5 values: current balance, current rate, new rate, years remaining, closing costs. 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 Refinance Break-Even Calculator work out the 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. It applies the formula Break-even months = closing costs ÷ monthly saving and shows the working so you can check each step by hand.
Is the 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.