Mortgage Refinance Break-Even Calculator
Enter your current loan, the new rate you're offered, and the closing costs. We'll estimate your new payment, monthly savings, and how many months it takes to recoup the closing costs.
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How this is calculated
Payments are principal & interest only (P&I), using the standard amortization formula: M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan balance, r is the monthly interest rate, and n is the number of monthly payments. Break-even = closing costs ÷ monthly savings. Property taxes, insurance, PMI, and points aren't included — add those separately if they change between loans.
Why the "how long will you stay" question matters
A lower rate only helps if you keep the loan long enough to recoup what you paid to get it. If your break-even point is 30 months and you plan to move or sell in 18, the refinance likely costs you money even though the rate is better. If you plan to stay well past the break-even point, the math usually favors refinancing.