Refinance Break-Even Calculator
Find out how many months it takes for your refinance savings to cover the closing costs.
Results
What is it?
The refinance break-even point is the number of months needed for accumulated monthly savings to equal the upfront closing costs of the refinance. After this point, you are in profit.
How to use
Enter your total closing costs and the monthly saving compared to your current mortgage payment. The result tells you how long you must keep the loan to benefit.
Example scenario
Closing costs of $4,800 with a monthly saving of $150: break-even = 4,800 / 150 = 32 months (2.7 years). If you plan to stay in the home for 5 years, refinancing makes financial sense.
Pro tip
Only refinance if you plan to stay in the property longer than the break-even period. No-closing-cost refinances roll fees into a slightly higher rate — the monthly saving is smaller but the break-even is immediate.