Free tools
Refinance Break-Even Calculator
Find the month a refinance pays for itself. Enter current and new payments plus closing costs, we'll show monthly savings, break-even, and lifetime savings.
Your numbers
Compare your existing mortgage to the new offer.
Break-even
24.3 moStandard
- Monthly savings
- $350
- Lifetime savings
- $96,500
- Closing costs
- $8,500
- Remaining term
- 25 yrs
How this is calculated
Break-even = Closing costs ÷ Monthly savings
Lifetime savings = (Monthly savings × 12 × Years) − Closing costs
If you hold past break-even, the refi pays for itself. Sell before, and you lock in a loss.
Want a deeper analysis?
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We'll shop your loan to multiple lenders, compare break-even scenarios, and tell you when waiting for a better rate is the smarter move.
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Common questions
What's a good break-even period?
Most homeowners aim to recoup refi costs within 24–36 months. If you plan to stay or hold the property longer than the break-even, the refi makes sense. Investors with shorter hold periods should be more conservative, under 18 months is the safer target.
Should I roll closing costs into the loan?
It pushes break-even out (you're financing the costs at the new rate) but preserves cash. The break-even math still works, just compare apples to apples. For investment property, rolling costs in is common because every dollar of preserved cash funds the next deal.
How does this differ from a no-cost refi?
A 'no-cost' refi just bakes the closing costs into a higher rate. The break-even is technically infinite (no upfront cost) but you pay more interest forever. Run both options through this calculator: the lower rate with costs is usually better if you'll hold past break-even.
Does this account for tax effects?
No, this calculator shows pre-tax savings. Mortgage interest deductibility (where it applies) means a portion of those savings is offset by lower deductions. For a tax-aware view, multiply lifetime savings by (1 − marginal tax rate) on the deductible portion.
Need help interpreting your numbers?
Ready to decide refi vs. hold with our debt-advisory team?
The break-even math is necessary but not sufficient. We'll layer rate forecasts, hold-period scenarios, and lender shopping into the decision.
No slides. No sales pitch. Just a focused strategy call.