Refinance Break-Even Calculator
Should you refinance? See your new payment, monthly savings, the exact month you break even on closing costs, and the true lifetime cost.
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Monthly savings
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New payment
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Break-even
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Cumulative net savings Break-even
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When does refinancing pay off?
It's all about the break-even date
Refinancing trades an up-front cost (closing costs) for a lower monthly payment. The break-even point is when your accumulated monthly savings finally cover those costs. If you'll stay in the home well past that date, refinancing usually wins. If you might move or sell first, you could lose money — even with a lower rate.
Refinancing to drop PMI instead of waiting? Compare it with simply reaching 20% equity first. Check your PMI removal date →
Refinance FAQ
How is the refinance break-even point calculated?
Break-even months = your closing costs ÷ your monthly payment savings. It is the point where the money you have saved finally covers what the refinance cost you. After that date, the savings are yours to keep.
Is a lower monthly payment always worth refinancing?
Not always. If you reset a loan with 25 years left into a new 30-year term, you can pay more total interest even at a lower rate — because you stretch the balance over more years. This calculator shows the lifetime interest both ways so you can see the real trade-off.
Should I roll closing costs into the loan?
You can, which avoids paying cash up front, but you then pay interest on those costs and your break-even math changes. Entering costs here as an up-front number gives you the cleanest break-even estimate.
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