Compare your current mortgage against a refinance option and see exactly when you'd recover the closing costs — plus whether the refi actually saves money over the life of the loan once term extension and closing costs are accounted for. For shopping a new home, use the main mortgage calculator. For the full schedule of a loan you already know the amount of, use the amortization calculator. For paying off your existing loan faster with extras, use the payoff calculator.
Refinance break-even calculator
You break even in
1 yr 9 mo· September 2027
Your monthly payment goes down by $295.18. After 1 yr 9 mo, your accumulated monthly savings will have covered the closing costs — every month after that is net savings in your pocket.
Enter six numbers for a quick refinance check. Open Refine refinance details to add cash-out or change the refi start date.
Quick refinance check
Your loan today
Your current monthly P&I: $1,900.01Doesn't match your statement? Double-check the balance, rate, and remaining term above.
Refinance option
Include origination fees, discount points, appraisal, title insurance, and any prepaid items. A typical US refinance runs 2–5% of the loan amount.
Refine refinance details
Cash-out amount and refi start date. Open this if you're pulling equity out or starting the new loan in a different month than today.
Cash-out (optional)
Leave at zero for a standard rate-and-term refinance. Enter a cash-out amount to add equity you're pulling out to the new loan's starting balance.
Refi start date
Current loan
Monthly P&I
$1,900.01
Total remaining interest
$295,002
Payoff date
December 2050
Refinance
Monthly P&I
$1,604.83Down $295.18/mo
Total interest
$302,737+ $6,000 closing costs
Payoff date
December 2055
Read both numbers
Cash-flow break-even and lifetime savings can disagree. A refinance that lowers your monthly payment by extending the term can recover closing costs quickly while still costing more in total interest over the life of the loan. The break-even card above shows the cash-flow picture. The net lifetime row below shows the whole-loan picture. The honest answer depends on how long you plan to stay in the home and which number matters more to you.
Cumulative net savings over time
Cumulative net savingsBreak-even (zero crossing)Break-even at Sep 2027
Lifetime cost comparison
Current remaining interest
$295,002
Refi total interest
$302,737
+ Closing costs
$6,000
Net lifetime cost$13,735
Refi loan — yearly principal vs interest
PrincipalInterest
Details
Full refi schedule & exports
The full refi amortization is hidden by default because this is a decision tool, not a schedule tool. Click Show schedule to expand it, or use the CSV button to download the month-by-month savings comparison.
How to use this refinance break-even calculator
Compare your current mortgage against a refinance option and see exactly when you'd recover the closing costs — and whether the refi saves money over the life of the loan.
Enter your current loanCurrent balance, current rate, and remaining term. Use your latest mortgage statement — the computed monthly P&I should match what you're paying today.
Enter the refi optionNew rate, new term, and your estimated closing costs. Your lender's Loan Estimate lists every fee individually; use the total.
Read both numbersThe hero card shows your cash-flow break-even month. The lifetime cost row shows the whole-loan comparison. An honest refi decision needs both.
Frequently asked questions
These cover what break-even means, when a lower rate is actually worth it, what counts as closing costs, and how this calculator differs from the other mortgage tools.
FAQ
What does 'break-even' mean for a mortgage refinance?
Break-even is the point at which the money you've saved on lower monthly payments finally adds up to what you paid in closing costs. Before break-even, the refinance is costing you money. After break-even, it's saving you money — assuming your monthly payment actually went down. If your rate dropped enough to lower the monthly payment by $150 and you paid $6,000 in closing costs, break-even is roughly $6,000 / $150 = 40 months. This calculator does the exact math and also shows the full cumulative savings curve over time.
FAQ
Is a lower rate always worth refinancing?
No. Two things can make a lower-rate refinance cost more in total than your current loan: closing costs you never recover, and term extension. If you refinance a loan with 22 years left into a new 30-year loan, your monthly payment can drop significantly but you're adding 8 years of interest payments. The honest question isn't just 'what's my new rate?' — it's 'how much total interest will I pay on the new loan (including closing costs) vs. what I'd pay if I kept the current loan?' This calculator shows both the cash-flow break-even and the total-interest comparison so you can see both sides.
FAQ
What counts as 'closing costs' in this calculator?
Closing costs should include everything you'd pay at or before the refinance closing: origination fees, discount points, appraisal, title insurance, recording fees, attorney fees, credit report fees, and any prepaid items the lender asks you to bring to closing. A typical US refinance has closing costs of around 2–5% of the loan amount. Your Loan Estimate from the lender will list all of these line-by-line — use the total. This tool treats closing costs as paid upfront; rolling them into the new loan balance is a Phase 2 feature.
FAQ
Should I include a cash-out amount in my break-even calculation?
Only if you're planning a cash-out refinance — pulling equity out of the home as part of the refi. If you enter a cash-out amount, this calculator adds it to the new loan's starting balance, which increases the monthly payment and changes the savings comparison. For a rate-and-term refinance (the most common case — new rate and term but same loan size), leave cash-out at zero. The break-even math is cleanest and most intuitive without cash-out.
FAQ
Does this assume closing costs are paid upfront or rolled into the new loan?
Phase 1 assumes closing costs are paid upfront, at closing. The cumulative-savings chart starts at -$closingCosts and climbs each month by the amount you're saving on the new payment. This matches the standard refinance-calculator convention and matches how most people think about break-even. If you're planning to roll closing costs into the new loan balance instead (which increases the loan amount and reduces upfront cash needed), the break-even math is different — that's on the Phase 2 roadmap.
FAQ
How is this different from the other mortgage calculators on this site?
The main mortgage calculator is for shopping a new home — it takes a home price and down payment and gives you a full PITI breakdown. The amortization calculator takes a loan amount and gives you the full payment-by-payment schedule. The payoff calculator helps you see how extra payments on your current loan save interest and time. This refinance calculator is the only one that compares two loans at once — your current loan against a refinance option — and the only one that answers 'when do I recover the closing costs?' If you're not considering a refinance, the other three tools are probably closer to what you want.
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