Mortgage Refinance Break-Even Calculator
Find your refinance break-even point in months.
All calculations happen locally in your browser — nothing is uploaded, stored or tracked.
Enter the loan amount and term
Same for both loans.
Enter old and new rates
And the closing costs of the refinance.
Read the break-even
Months, plus savings over 1/3/5 years.
What Is a Break-Even Point?
Refinancing costs money — closing costs of 2–5% of the loan are typical — but a lower rate saves money every month. The break-even point is the number of months until the cumulative savings cover the costs. Stay in the home past that point and the refinance wins.
The calculator finds the break-even using your monthly savings (old payment minus new payment) and your total closing costs. It also shows the savings over 1, 3 and 5 years.
The Formula
Monthly savings = old payment − new payment on the same loan amount and term. If the new payment is not lower, refinancing does not break even from rate alone.
Your data never leaves your device.
Every calculation on this site runs in your browser using vanilla JavaScript. Nothing is uploaded, stored or tracked.
- 100% local, client-side calculations
- No data stored on any server
- No tracking, no analytics, no ads scripts
- Works offline once loaded
Frequently Asked Questions
How do I calculate refinance break-even?
Divide the closing costs by the monthly payment savings. If costs are $6,000 and you save $200/month, break-even is 30 months.
Is refinancing worth it?
It depends on how long you will stay: past the break-even point you come out ahead. Also consider whether you are extending the term.
What if my new term is longer?
A longer term lowers the payment regardless of rate — the calculator compares equal terms, so you can see the pure rate effect.
Should I include tax savings from points?
If you pay points, the tax treatment varies. The calculator keeps it simple with total costs.
What is a good break-even period?
A common guideline is 2–3 years or less — short enough that the savings materialise before you are likely to move.