Costs divided by monthly savings
If refinancing saves $250 per month and costs $6,000, the simple payment break-even is 24 months. Restarting a longer term can still increase lifetime interest, so the payment result is not the whole decision.
RefiPoint • US mortgage refinance comparison
↘Refinance Break-Even Calculator
Compare current and proposed mortgage payments, closing costs and the estimated refinance break-even month.
Loading tool...
Using this tool
Recover the closing costs before the loan ends
Enter the current balance, rate and remaining term, then the proposed rate, new term and closing costs. RefiPoint compares principal-and-interest payments and estimates how long monthly payment savings take to recover the upfront cost.
Reading the output
A lower payment can hide a longer term
Two amortized payments compared
Break-even months = closing costs divided by current payment minus new payment. Both payments use the standard fixed-rate amortization formula.
Use both Loan Estimates
- Use the note rate for payment comparisons and review APR separately.
- Compare the remaining term with the proposed term instead of assuming a lower payment means lower cost.
- Use the lender's Loan Estimate for fees and cash to close.
Before relying on the result
Rates, terms and closing costs
What if the new payment is not lower?
There is no payment-savings break-even under the entered assumptions, although other reasons for refinancing may still exist.
Does the calculator include taxes and insurance?
No. It compares estimated principal and interest plus the closing costs you enter.