Mortgage Refinance Break-Even Calculator
Determine if refinancing your mortgage makes financial sense. This calculator compares your current mortgage rate against a new rate to calculate your exact monthly savings and the exact break even point where the cost of refinancing is recovered.
Current loan
New loan
Closing costs
Cash-flow break-even
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Time for monthly savings to repay what refinancing costs you upfront.
Monthly payment change
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Old payment vs. new payment, principal & interest only.
Cumulative cost over time
Assumes fixed-rate, fully amortizing loans and constant monthly principal & interest payments. Does not include escrow, PMI, or tax changes. "New rate" auto-fills from the latest publicly available weekly average when this page is served from a site with the rate-cache endpoint connected — otherwise enter your own quoted rate.
How to Use the Mortgage Refinance Break-Even Calculator
Refinancing your mortgage isn't free. Closing costs, application fees, and points all add up. While a lower interest rate will save you money on your monthly payments, it takes time to earn back those upfront costs. This calculator helps you determine exactly when you break even—the point at which your monthly savings surpass your initial expenses.
Inputting Your Current Loan Details
Start by entering the details of your existing mortgage. You'll need your Remaining Balance (the principal you still owe), your Current Interest Rate, and the Years Remaining on your loan. Note that this is the remaining term, not the original term of your loan.
Evaluating the New Loan
Next, input the specifics of the new loan you are considering. The calculator automatically fetches the latest national average 30-year fixed rate to give you a baseline, but you can overwrite this with any quoted APR you've received. Select your desired New Loan Term (e.g., 15, 20, or 30 years). If you are considering a cash-out refinance, you can also include that amount.
Accounting for Closing Costs
Enter your Total Closing Costs. These typically range from 2% to 6% of the loan amount and cover things like appraisal, title search, and loan origination fees. You can also toggle whether you plan to pay these upfront or roll them into your new loan balance.
Analyzing the Results
The calculator instantly computes your Cash-flow break-even point. This is the exact number of months it will take for your monthly savings to exceed your closing costs. Use the interactive Cumulative Cost Chart to visualize the long-term impact. By adjusting the slider, you can see exactly how much you will save (or lose) depending on how many years you plan to stay in the home before selling or moving.