CALCULATOR · FREE免费 · Free
Refinance Break-Even Calculator
Refinancing is not automatically worth it when rates fall: closing costs must be recovered first. Payment savings times months must exceed the cost; if you sell before the break-even month, you may not recover it.
--Monthly savings · $
--Break-even months · months
--5-year net · $
Estimates only; verify on site before ordering or building.
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Example
| Item | Value | Unit |
|---|---|---|
| Current payment | 2000 | $ |
| New payment | 1800 | $ |
| Closing costs | 6000 | $ |
| Monthly savings | 200 | $ |
| Break-even months | 30 | months |
| 5-year net | 6000 | $ |
Where people go wrong
- Comparing rates only, not payments and closing costs.
- Treating break-even months as the loan term.
- Ignoring that amortization restarts.
FAQ
Is a 30-month break-even good?
It depends on whether you will sell or refinance within 30 months; staying longer is usually safer.
What is in closing costs?
Appraisal, title, recording, lender fees and more; use the total on the Loan Estimate.