Refinance Break-Even Calculator
A lower rate isn't always worth the closing costs. Enter your current loan and the new terms you've been quoted — we'll show exactly how many months it takes for the savings to cover the costs.
Rates shown are your estimates — this calculator doesn't publish rates. Your actual closing costs appear on your Loan Estimate.
Break-even point
18.3 months
After this point, the refinance saves you $328/month.
- Current monthly payment
- $2,394
- New monthly payment
- $2,066
- Monthly savings
- $328
- Lifetime savings (after costs)
- $100,396
Important: All calculations on this site are estimates for educational purposes only and do not constitute a loan offer, approval, or commitment to lend. Your actual rate, payment, and terms depend on credit approval and will be provided by your loan officer.
How this works
- Both payments are principal & interest only — taxes and insurance don't change with a refinance, so they're left out of the comparison.
- Break-even = closing costs ÷ monthly savings. Sell or refinance again before that month and the refinance costs you money.
- Lifetime savings = (monthly savings × payments over the shorter of your remaining term and new term) − closing costs.
- A lower rate with a longer term can raise your monthly savings while increasing total interest — watch both numbers.
Want a second opinion on a refinance quote you received? Send it my way — I'll review it for free.