Calculators / Refinance

Refinance Break-Even Calculator

Refinancing only saves money if you stay in the loan long enough to recover the closing costs. Enter your current loan and a quoted new rate to see your break-even month and lifetime savings.

Current monthly P&I$1,562
New monthly P&I$1,280
Monthly savings$281
Cash out of pocket today$0
Break-even0 months (0.0 years)
Total interest — keep current loan$267,199
Total interest — refinance$235,926
Lifetime savings (net of costs)$31,273

How to read this

Break-even is the month your accumulated monthly savings finally equal the closing costs. If you plan to sell or refinance again before then, the refi costs you money. A common rule of thumb: only refinance if you'll stay in the home at least 2× the break-even period.

Watch the term reset

Refinancing into a fresh 30-year loan can lower your payment but extend how long you're paying interest. If you're 8 years into a 30-year loan, consider a 20- or 15-year refi so you don't undo the principal progress you've already made.

Closing cost ballparks

Refinance closing costs typically run 2–5% of the loan balance. Common line items: lender origination, appraisal ($500–$800), title insurance, recording fees, and prepaid escrow. Ask each lender for a Loan Estimate and compare apples-to-apples.