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Mortgage Refinance Calculator with Break-Even Point

See your new payment, monthly and lifetime savings, and the exact month your refinance pays for itself. Tweak any number and a shareable URL updates with your results.

Updated April 2026 · Reviewed by Josh Robins

Your current mortgage

As it stands today, before the refinance.

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%

Used to estimate your remaining balance.

The refinance offer

What the new lender is quoting.

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$

Typically 2–5% of the refinanced loan amount.

Enter your numbers to see your break-even point.
How to read this: The break-even point is when your cumulative monthly savings equal the cost of refinancing. Past that point, refinancing is a net win — as long as you stay in the home longer than the break-even period. If you plan to move in under two years, a refi almost never pays off even if the rate is much lower.

How to know if refinancing is worth it

A refinance isn't automatically a good deal just because the rate is lower. It's a trade: you pay closing costs today in exchange for a lower monthly payment and (if the new term is similar) lower lifetime interest. Whether that trade pays off comes down to one number — the break-even point.

The break-even point is the number of months it takes for your cumulative monthly savings to equal your closing costs. It's the simplest formula in personal finance:

break-even months = closing costs ÷ monthly savings

Example: $6,000 in closing costs and $250/month in savings = 24 months to break even. If you're planning to stay in the house 5+ more years, that's clearly worth it. If you might move in two years, you're paying closing costs for nothing.

Three numbers that change the answer

  • How much interest you've already paid. Deep into a 30-year loan, most of your payment is principal. Resetting the clock on interest can actually cost you more in lifetime interest even with a lower rate — that's why we show lifetime savings, not just monthly savings.
  • Closing cost treatment. Financing them lets you keep cash in a high-yield savings account. Paying out of pocket lowers your payment and shortens break-even. The calculator shows both scenarios.
  • The new term. Shortening from a 30-year to a 15-year usually raises your payment but slashes lifetime interest. Extending back to a 30-year lowers the payment but restarts the amortization clock.

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Refinance Calculator FAQ

What is the break-even point on a mortgage refinance?+
The break-even point is the number of months it takes for the cumulative monthly savings from a lower rate to equal the closing costs of the refinance. Formula: closing costs ÷ monthly savings = break-even months. If your closing costs are $6,000 and you save $300/month, you break even at 20 months. Past that point, refinancing is a net win — but only if you stay in the home longer than the break-even period.
Is it worth refinancing to save $200 a month?+
Only if your break-even point is shorter than how long you plan to stay in the home. $200/month savings against $6,000 closing costs is a 30-month break-even. If you plan to be in the house 5+ more years, that's clearly worth it. If you're thinking about moving in the next two years, probably not — you would pay $6,000 in closing costs to save only about $4,800.
How much does a mortgage refinance cost?+
Refinance closing costs typically run 2% to 5% of the refinanced loan amount. On a $400,000 refi, expect $8,000 to $20,000 depending on lender, state, and whether you pay discount points. Costs include lender origination fees, title insurance (new lender requires a new title policy), appraisal ($500–$800), recording fees, and any escrow setup. Ask for a loan estimate from at least 3 lenders — costs vary widely.
Should I finance the closing costs or pay out of pocket?+
If the cash would otherwise sit in a high-yield savings account at 4–5%, financing closing costs can be the better move (you keep your cash earning interest while spreading the cost across decades). If the cash would sit in checking earning nothing, paying out of pocket saves you interest on the closing-cost portion. Our calculator shows you both scenarios side-by-side so you can compare break-even points.
What is a no-closing-cost refinance?+
A no-closing-cost refinance doesn't actually mean free — the lender either rolls the costs into the loan balance or charges a slightly higher interest rate (typically 0.25%–0.50% higher). Over 30 years, the higher rate usually costs more than paying the closing costs outright. Use this calculator twice: once with your actual closing costs and once at the no-closing-cost rate, to see which wins over your expected stay in the home.
How much does the rate need to drop to make refinancing worthwhile?+
The old rule of thumb was 1% lower — but that was based on higher closing-cost ratios. Today, a 0.5% drop can easily pay off if closing costs are modest and you plan to stay in the home. The better question isn't the rate delta but the break-even point and your remaining tenure in the home. If break-even is under 24 months and you're staying at least 5 more years, refinancing is almost always a win.
Will refinancing hurt my credit score?+
Temporarily and modestly. The hard inquiry drops your score a few points for a few months. Multiple mortgage inquiries within a 14–45 day window are counted as a single event by FICO, so shop multiple lenders quickly. Once the new loan shows up and you pay it on time, your score returns to baseline within 3–6 months.
Should I refinance to a 15-year from my 30-year?+
A 15-year refinance has a higher monthly payment but can save hundreds of thousands in lifetime interest. On a $300,000 refi, moving from 6.5% over 30 years to 5.75% over 15 years raises the payment by roughly $600/month but saves about $130,000 in interest over the life of the loan. Only do it if the higher payment still leaves comfortable room for emergency savings, retirement contributions, and normal life.

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