Mortgage Refinance Break-Even Calculator

The break-even point is the exact number of months it takes for your monthly interest savings to exceed the upfront closing costs and fees of the new loan. For example, if refinancing costs $3,000 and saves $150/month, your break-even point is 20 months. Always include exit fees using our Prepayment Penalty Calculator or 3-Loan Side-by-Side Comparison Tool.

Refinancing makes strong financial sense if you plan to stay in the home well past your break-even month, and if you can lower your interest rate by 0.75% to 1.5% or more without extending your remaining loan term. Otherwise, aggressive principal payments inside our Mortgage Prepayment Calculator often beat closing costs.

Avoid resetting to a 30-year term if you are already 5–10 years into your existing loan. Instead, choose a 20-year or 15-year term, or make voluntary extra prepayments on the new loan via our Extra Mortgage Payoff Calculator so you don't erase previous equity gains.