Refinance Break-Even Calculator
Find out how many months until your refinance savings cover the closing costs. Enter your current and new payment plus closing costs to see the break-even point.
- Monthly savings
- 300
- Break-even (months)
- 20
How to use
- Enter your current monthly payment.
- Enter the new monthly payment after refinancing and the closing costs.
- Read the monthly savings and the break-even point in months.
Examples
- $2,000 → $1,700, $6,000 costs:
break-even 20 months - $300/mo savings:
$6,000 ÷ $300 → 20 mo
FAQ
- How is the break-even point calculated?
- Break-even months = closing costs ÷ monthly savings, rounded up. Monthly savings is your current payment minus the new payment.
- What if the new payment is higher than the current one?
- Then refinancing produces no monthly savings, so there is no break-even and the calculator reports that refinancing does not pay off.
- Why round the break-even months up?
- You only fully recover the closing costs once a full month of savings has accrued, so the figure is rounded up to the next whole month.