Housing calculator

Refinance break-even calculator

Find out how many months until refinancing your mortgage actually pays off — and whether it's worth it for your timeline.

Includes closing costs Shows lifetime interest saved
Enter your current and new loan Housing · 2026
Current mortgage
New refinance offer
Break-even point
22 months
to recoup your closing costs
✓ Worth it if staying 2+ years
Current payment
New payment
Monthly savings

How to read your results

Refinancing isn't free — you'll pay closing costs (typically 2–5% of the loan amount) for the new loan. The break-even point is how many months of monthly savings it takes to recoup those closing costs. After that point, every additional month you stay in the home is pure savings.

If you plan to move or sell before reaching break-even, refinancing likely isn't worth it — you'd pay the closing costs but never fully recoup them.

The "stretch the term" trap: Refinancing to a new 30-year loan after already paying down your current 30-year loan for several years resets the clock — even at a lower rate, you may pay more total interest over time because you're financing for longer. Consider a shorter-term refinance (15 or 20-year) if you want lower rate AND less lifetime interest.

What this calculator doesn't include

  • Cash-out refinancing — if you're refinancing to pull out equity, this changes the math significantly (you'd compare against your goals for that cash).
  • PMI removal — if your new appraisal shows 20%+ equity, you may drop PMI as part of refinancing, adding extra monthly savings not captured here.
  • Tax deduction changes — mortgage interest deduction value changes slightly with a new loan structure.
  • Rate lock timing — rates fluctuate; the rate you're quoted today may change before closing.

When refinancing makes the most sense

Refinancing is most clearly worth it when you can drop your rate by 0.75% or more, plan to stay in the home well beyond your break-even point, and aren't planning to sell or move within the next 2-3 years. The general rule of thumb — refinance if rates drop at least 1% — is a reasonable starting heuristic, though this calculator gives you the precise math for your situation.