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Refinance Break-Even Calculator
Should you refinance? Enter your current loan and the new offer. The calculator shows your monthly savings, the exact month you break even on closing costs, and total savings over your planned stay.
Your current mortgage
$
Amount you still owe today
%
yrs
Years left on your mortgage
New refinance offer
%
yrs
$
Typically 2-5% of loan balance
yrs
Calculating…
Break-Even Point
—
Months until savings exceed closing costs
Monthly savings
—
Rate reduction
—
Closing costs
—
Total savings over stay
—
Current loan
Balance remaining—
Interest rate—
Monthly payment (P+I)—
Remaining term—
Total interest remaining—
New refinanced loan
New loan balance—
New interest rate—
New monthly payment (P+I)—
New term—
Total interest new loan—
Cumulative savings vs closing cost — year by year
Green = cumulative monthly savings. Red line = your closing costs. Where green exceeds red is your break-even.
Run the calculator to see the chart.
Important: Extending your term resets the clock. Refinancing a loan with 15 years left into a new 30-year mortgage will lower your monthly payment but dramatically increase total interest paid. Compare the total cost columns carefully — sometimes a shorter new term (15 or 20 years) saves more overall even with a higher payment.
When Does Refinancing Make Sense?
- Rate drops by 0.5% or more — the traditional rule of thumb. Below 0.5% the monthly savings may not justify closing costs unless you plan to stay long-term.
- You plan to stay past break-even — if you might move or refinance again before break-even, you will lose money on the closing costs.
- You do not reset to a long new term — refinancing 15 years remaining into a new 30-year loan reduces your payment but costs far more in total interest.
- No-cost refinance option — some lenders offer no closing cost refis (higher rate) that break even immediately, useful if you are unsure how long you will stay.