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Finance Calculators

Mortgage Refinance Break-Even Calculator

Calculate how many months it takes for the monthly savings from refinancing to cover the closing costs of the new loan.

Monthly savings
Break-even period
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About the Mortgage Refinance Break-Even Calculator

Refinancing a mortgage isn't free — closing costs typically run thousands of dollars — so it only makes financial sense if you plan to stay in the home long enough for the lower monthly payment to recoup those costs.

Formula: Monthly Savings = Current Payment − New Payment · Break-Even Months = Closing Costs ÷ Monthly Savings

If you expect to sell or refinance again before the break-even point, the refinance likely isn't worth it. This calculator compares principal and interest only — factor in any change in taxes, insurance, or loan term separately for a complete picture.

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