Mortgage Tools
Mortgage Refinance Break-Even Calculator
Find your monthly savings from a lower rate, and how many months it takes to recover the closing costs.
This is a rough estimate for education, not financial advice. It ignores taxes, insurance, points and any change in property taxes; ask your lender for a loan estimate before deciding. Nothing you type is sent anywhere.
How the break-even is calculated
Your new monthly payment is compared with your current one (payment and principal and interest only). If the new payment is lower, the difference is your monthly savings. Break-even is the closing costs divided by the monthly savings: how many months until the savings pay back what you spent to refinance. If you roll the costs into the loan instead of paying them upfront, there is no cash outlay to recover, and break-even is shown as immediate as long as the payment is lower.
Frequently asked questions
Is refinancing worth it if I plan to move soon?
Usually not, if you will sell or move before the break-even month. Compare your break-even months with how long you plan to stay.
Does this include private mortgage insurance?
No. If dropping or adding PMI changes your payment, factor that in separately.
What is a good closing cost estimate?
Lenders typically charge 2% to 5% of the loan amount. Ask for a loan estimate to get exact numbers, which vary by lender and state.
Related: the loan calculator and the HELOC payment calculator.