Refinance Break-Even Calculator
Compare your current mortgage vs a new rate to find your break-even point. Calculate monthly savings and determine if refinancing makes financial sense.
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Results
Refinance makes sense!
- Current payment: $1,996
- New payment: $1,770
- Difference: $226/month
- Closing costs: $4,500
- Monthly savings: $226
- Break-even: 20 months (1.7 years)
- After 1 year: -$1,785
- After 3 years: $3,645
- After 5 years: $9,074
- Current loan (if held): $390,666 (28 years)
- New loan (if held): $357,125 (30 years)
- Difference: $33,541 saved
- New loan amount: $280,000
- Cash needed at closing: $4,500
Tip: If break-even is under 2-3 years and you plan to stay, refinancing usually makes sense. Watch for longer terms resetting your payoff timeline.
How to Use This Refinance Break-Even Calculator (Mini Guide)
Compare your current mortgage to a new rate and find out how many months until refinance costs pay for themselves — essential for timing refinance decisions.
What this calculator shows
Compares your current monthly payment vs a new refinanced payment.
Calculates break-even point: how many months until closing cost savings are recouped.
Shows 5-year net savings to help you decide if it's worth the hassle.
When refinancing makes sense
Rate drops by 0.5%+ and you plan to stay 2-3+ years.
You can switch from ARM to fixed and lock in stability.
You want to shorten term (30yr → 15yr) without drastically increasing payment.
Understanding break-even
Break-even under 24 months = usually worth it.
Break-even 24-36 months = depends on how long you'll stay.
Break-even over 36 months = probably not worth the effort unless rate savings are huge.
Watch out for
Resetting to a new 30-year term extends your payoff timeline significantly.
Lifetime interest may go UP if you extend the term, even with a lower rate.
Don't forget closing costs — they can be $3K-$6K+ depending on loan size.
Try it with local assumptions
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