Refinance Break-Even Calculator

Is refinancing worth it? Enter your current loan and new loan details to find the exact month you break even — when your monthly savings finally exceed your closing costs.

When does refinancing make sense?

The classic rule of thumb is to refinance when you can lower your rate by at least 1%. But this ignores closing costs and how long you plan to stay. The break-even calculator is a more accurate guide. If your break-even is 18 months and you plan to stay 10 years, refinancing is a clear winner. If break-even is 5 years and you might move in 3, it probably isn’t worth it.

The “no-closing-cost” refinance trap

Many lenders offer “no-closing-cost” refinances where fees are rolled into your rate (you get a slightly higher rate) or added to your loan balance. This can make sense if you plan to refinance again soon, but in most cases you pay more over time. Use this calculator with a slightly higher rate and zero closing costs to compare both options for your situation.

Cash-out refinancing

If you’re refinancing to take cash out of your home equity, factor in the larger loan balance and typically higher rate. The break-even calculation changes significantly when you increase your loan amount. Use our Home Equity Calculator to compare cash-out refi vs HELOC costs first.