Refinance Break-Even Calculator
Enter current and new rate, loan balance, and closing costs to see if refinancing makes sense.
Calculate exactly how much you save by refinancing your mortgage and how many months it takes to break even on closing costs. Compares your current payment to the new payment, monthly savings, and 5-year and lifetime interest savings.
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Last reviewed: April 2026Report an error
Monthly Savings
$179
Save $179/mo. Break-even: 28 months. Lifetime savings: $48,579.
Current Payment
$2,069
New Payment
$1,891
Break-Even
28 mo
5-Year Savings
$5,716
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How to Use This Refinance Calculator
- Enter your current loan balance.
- Enter your current interest rate.
- Enter the new refinance rate.
- Enter remaining term and closing costs.
- Read monthly savings, break-even months, and total interest saved.
Frequently Asked Questions
- Generally when: (1) the new rate is at least 1% lower, (2) you plan to stay long enough to pass the break-even point, and (3) closing costs are manageable (typically 2–5% of loan amount).
- Break-even = closing costs / monthly payment savings. If it costs $4,000 to refinance and you save $200/month, your break-even is 20 months.
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