Mortgage Refinance Break-Even Calculator

How this calculator works

Both payments use fixed-rate amortization. The simple break-even divides entered closing costs by estimated monthly payment savings.

Change one assumption at a time to see which inputs have the greatest effect on the estimate.

Worked example

If costs are $4,000 and monthly savings are $200, the simple break-even is 20 months.

Limitations

Extending the term can lower a payment while increasing lifetime interest. Taxes, escrow, points, prepayment, and opportunity cost are excluded. Editorial review is required before publication.

Review this educational estimate against current quotes, official information, and your own budget before making a financial decision.