Refinance Break-Even Calculator
A lower rate only helps if you keep the loan long enough to earn back what the refinance costs. Compare the two payments, the break-even point and the interest over the life of each loan.
Break-even point
15 months
About 1 yr 3 mo of $672 monthly savings to recover $9,500 in closing costs.
- New payment85%
- Monthly savings15%
- Current principal and interest
- $4,613
- New loan amount
- $640,000
- New principal and interest
- $3,941
- Monthly savings
- $672
- Interest left on current loan
- $854,514
- Interest on new loan
- $778,612
- Lifetime interest saved
- $75,901
If you keep the new loan longer than 1 yr 3 mo, the refinance has paid for itself and every month after is savings.
| Year | Cumulative savings | Closing costs | Net position |
|---|---|---|---|
| 1 | $8,065 | $9,500 | -$1,435 |
| 2 | $16,131 | $9,500 | $6,631 |
| 3 | $24,196 | $9,500 | $14,696 |
| 4 | $32,261 | $9,500 | $22,761 |
| 5 | $40,326 | $9,500 | $30,826 |
| 6 | $48,392 | $9,500 | $38,892 |
| 7 | $56,457 | $9,500 | $46,957 |
| 8 | $64,522 | $9,500 | $55,022 |
| 9 | $72,587 | $9,500 | $63,087 |
| 10 | $80,653 | $9,500 | $71,153 |
Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.
How this calculator works.
Your current payment is figured from the balance you owe today, your current rate and the years left on the loan. The new payment uses the new loan amount, which is your balance plus any cash out, plus closing costs if you choose to roll them in.
Break-even is closing costs divided by the monthly savings. If you plan to stay in the home and keep the loan longer than that, the refinance has paid for itself; if you expect to sell or refinance again sooner, it may not.
Lifetime interest compares the interest left on your current loan with the interest on the new one over its full term. Restarting a 30-year clock can lower the payment and still cost more interest overall, which is why both numbers are shown.
Break-even months = closing costs ÷ (current monthly payment − new monthly payment).
Common questions.
Turn the estimateinto real numbers.
Answer a few questions and our team will price your scenario with current rates and the right program.
Prefer to talk? (949) 774-9599