Mortgage Refinance Break-Even Calculator
Calculate refinance break-even point. Determine how many months needed for refinance savings to exceed closing costs.
Formula
Break-Even Months = Closing Costs ÷ Monthly Savings
- Monthly Savings = Current Payment − New Payment
- Break-even: when cumulative savings ≥ closing costs
- After break-even: pure savings
- Consider time to refinance and loan remaining term
Example
Inputs
- Closing Costs (USD): 3000
- Current Monthly Payment (USD): 1500
- New Monthly Payment (USD): 1200
Closing costs $3000, monthly savings $300: break-even = 10 months
Frequently asked questions
Is refinance worth it?
If you plan to stay beyond break-even point, yes. Otherwise, the costs exceed your savings.
What costs should I include?
Origination, appraisal, inspection, title, insurance, recording fees, taxes.