Refinance Break-Even Calculator
Should you refinance? Compare your current loan to a new rate and term to see the monthly savings, the month it breaks even, and the true lifetime impact.
Refinancing is only a win if you stay long enough to recoup the closing costs — and only a real win if the new loan doesn't quietly cost more over its longer life. This calculator surfaces both: the break-even month and the lifetime impact.
Use it with the Mortgage Calculator and the Closing Cost Estimator to pin down the new payment and the fees that set your break-even point.
FAQ
- When is refinancing worth it?
- When you'll stay in the home past the break-even month — the point where your accumulated monthly savings have repaid the refinance closing costs. Sell or refinance again before then and you lose money on the deal.
- Why can a lower payment still cost more?
- Refinancing usually resets the loan to a new full term. A lower rate spread over a longer term can mean more total interest even though the monthly payment drops. Watch the lifetime impact figure, not just the monthly savings.
- What closing costs should I expect on a refinance?
- Typically 2–5% of the loan — lender fees, appraisal, title, and recording. Some lenders offer 'no-cost' refis that fold the costs into a higher rate; run both ways through the calculator to compare.
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