Refinance Break-Even Calculator
Refinancing your mortgage can lower your monthly payment, but it comes with closing costs. This calculator divides your total refinance closing costs by your monthly payment savings to show exactly how many months you need to stay in the home before the refinance pays for itself.
About this calculator
Calculate how many months it will take for mortgage refinance savings to cover the closing costs, so you know if refinancing is worth it.
Frequently Asked Questions
What counts as refinance closing costs?
Closing costs typically include origination fees, appraisal fees, title insurance, recording fees, and prepaid interest or escrow. Your lender's loan estimate will list the exact total.
What is a good break-even period?
Generally, if you plan to stay in your home longer than the break-even period, refinancing makes financial sense. Many experts suggest a break-even under 2-3 years is favorable.
Does this account for interest paid over the life of the loan?
No, this calculator only measures when monthly payment savings offset upfront closing costs. It doesn't factor in total interest paid over the full loan term, which is a separate consideration.