What is a refinance break-even point?
The break-even point is how long it takes for the money you save each month from a lower payment to add up to more than what you paid in closing costs to get the new loan. Before that point, refinancing has technically cost you money overall; after it, you’re saving.
How this calculator works
The calculator divides your total closing costs by your monthly payment savings (current payment minus new payment) to find the break-even point in months and years. It also compares that break-even point to how long you plan to stay in the home to estimate your net savings and whether refinancing is likely to pay off before you’d move or sell.
This is a general planning estimate for educational purposes and does not account for tax effects, changes in loan balance, or opportunity cost of the closing costs.