Refinance Break-Even Calculator

Your details

The outstanding principal you still owe on your existing mortgage.
Your existing mortgage annual interest rate.
%
How many monthly payments are left on your existing mortgage.
months
The annual interest rate offered on the refinance loan.
%
Length of the new refinanced loan.
Points paid upfront to buy down the interest rate. One point = 1% of the loan balance.
%
Lender origination or underwriting fee, in dollars.
Appraisal, title insurance, recording fees, escrow, prepaid items and any other third-party costs.
When on, closing costs are added to the new loan principal instead of paid upfront. This lowers the immediate out-of-pocket cost but increases the loan balance and the monthly payment slightly.
Currency
Break-even pointBreaks even quickly
11months

Months until cumulative savings exceed total closing costs

Current monthly payment$1,934.55
New monthly payment$1,589.81
Monthly payment change$344.74
Total closing costs$3,500.00
Total interest savings$8,034.37
Net savings over term$4,534.37
Current loan$1,934.55
Refinanced loan$1,589.81

Monthly savings: $344.74

You break even in 11 months (0.9 years).

  • You need to stay in the home at least 11 months for the refinance to pay off.
  • Your monthly payment drops by $344.74, freeing up cash for other goals.
  • Over the life of the loan you save $4,534 after covering all closing costs.
  • You pay $3,500 upfront. Rolling those costs into the loan delays break-even slightly but eliminates the out-of-pocket expense.

Next stepWith a short break-even period, refinancing looks worthwhile as long as you plan to stay in the home.

 = Powered by OnlyCalculators