Mortgage Refinance Break-Even Calculator
Estimate months until refinance closing costs are recovered from a lower payment — assuming the same remaining term.
Not financial, tax, or lending advice. Confirm terms with your provider.
Estimated monthly payment savings
$172
Break-even
38 months
Current est. payment $2,149 → new $1,977. Same remaining term assumed. Educational only.
How to read the result
If break-even is longer than you expect to keep the loan, the “savings” may never show up in cash.
Put every cost you would not pay by staying put into closing costs — including fees rolled into the new balance.
Worked scenarios
Large rate cut + modest costs often breaks even inside 12–24 months.
Tiny rate cut + high points/fees can produce a long break-even even when the payment falls slightly.
Extending the term is a different decision: payment may drop while lifetime interest rises.
What this tool does not do
It is not a lender quote, credit decision, or advice to refinance.
Taxes, escrow changes, and cash-out uses need separate analysis.
Frequently Asked Questions
Does this include taxes or points?
Only if you include them in closing costs. Tax issues belong with a tax professional.
Why keep the same term?
It isolates rate savings. Changing term mixes cash-flow goals with interest cost.
Is this a refinance offer?
No. Educational math only.