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Mortgage Refinance Break-Even Calculator

Find out if — and when — refinancing actually pays off.

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How It's Calculated

Break-Even (months) = Closing Costs ÷ Monthly Payment Savings. If you stay in the home longer than this, refinancing pays off.

Example

Example: refinancing a $340,000 balance from 7.25% to 6.0% saves roughly $356/month. With $5,000 in closing costs, that pays for itself in about 14 months.

Frequently Asked Questions

Is refinancing worth it if I might move soon?

Only if you plan to stay in the home longer than the break-even point — otherwise the closing costs outweigh the savings.

Does this account for resetting the loan term?

Yes — comparing to a new 30-year term can lower payments but restart your amortization clock, which this tool reflects in P&I only, not total lifetime interest paid.

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