Refinance Break-Even Calculator
Fill in the values and the answer updates as you type.
How the Refinance Break-Even Calculator works
Both payments use P × r ÷ (1 − (1 + r)^−n) with the same balance and term. Monthly savings = current payment − new payment. Break-even months = closing costs ÷ monthly savings. Net savings over your stay = savings × 12 × years − costs. Rolling costs into the loan, a longer term, or cash taken out changes the result, so compare total interest too. Example: Refinancing $300,000 from 7 percent to 5.5 percent over 25 years drops the payment from $2,120.34 to $1,842.26. Savings of $278.08 a month recover $4,500 of costs in 16.2 months.
Inputs and results
The Refinance Break-Even Calculator takes 6 inputs and gives 5 results.
What you enter
- Current loan balance ($) — starts at 300000.
- Current interest rate (%) — starts at 7.
- New interest rate (%) — starts at 5.5.
- Remaining and new term (years) — starts at 25.
- Refinance closing costs ($) — starts at 4500.
- Years you expect to stay (years) — starts at 7.
What you get
- Break-even point (months)
- Monthly savings
- Current payment
- New payment
- Net savings over the time you stay
Example: Refinance Break-Even Calculator with the starting values
With current loan balance 300000 $, current interest rate 7 %, new interest rate 5.5 %, remaining and new term 25 years and refinance closing costs 4500 $, the calculator returns:
| Break-even point (months) | 16.2 |
|---|---|
| Monthly savings | $278.08 |
| Current payment | $2,120.34 |
| New payment | $1,842.26 |
| Net savings over the time you stay | $18,858.31 |
Change any value above and the results update straight away.
Refinance Break-Even Calculator FAQ
How do I use the Refinance Break-Even Calculator?
Enter current loan balance, current interest rate, new interest rate and remaining and new term in the fields, then read break-even point (months), monthly savings, current payment and new payment in the result panel. The answer updates as you type, and you can press Calculate or Enter to refresh it. Use “Copy link” to share your exact numbers with someone else.
What does the Refinance Break-Even Calculator calculate?
Monthly savings and months to recover refinance costs. It returns break-even point (months), monthly savings, current payment and new payment from the 6 values you provide.
What values does the Refinance Break-Even Calculator start with?
It opens with current loan balance 300000 $, current interest rate 7 %, new interest rate 5.5 % and remaining and new term 25 years so you can see a working result straight away. Replace them with your own numbers, or press Reset to return to these starting values.
Is the Refinance Break-Even Calculator free and private?
Yes. It is free, needs no account, and runs in your browser, so nothing you type is sent to or stored on our servers. See the Privacy Policy for details.
Can I rely on the Refinance Break-Even Calculator for financial decisions?
Treat the result as a well-rounded estimate. Real situations often have details a general calculator cannot know, so confirm financial decisions with a qualified professional. See the Disclaimer for more.