Refinance Break-Even Calculator
Find out if refinancing saves money. Compare your current loan with the new rate and see how many months until you break even.
Frequently asked questions
- What is break-even on a refinance?
- The number of months of savings needed to recover the closing costs. Sell before that point and refinancing cost you money.
- Is a lower payment always better?
- No. Extending the term lowers the payment but can increase total interest. Compare lifetime totals too.
- What closing costs should I enter?
- Origination fees, appraisal, title insurance and points - typically 2-5% of the loan amount.
- What break-even is acceptable?
- Under 3 years is a clear win. Beyond 5 years, only refinance if you are confident you will keep the loan that long.
This tool runs entirely in your browser. No data is uploaded anywhere.