Refinance Break-Even Calculator

See how long it takes for a lower monthly principal & interest payment to recover the cash closing costs of a refinance.

Current balance (USD)

Current rate (% APR)

Months left on current loan

New rate (% APR)

New term (months)

Closing costs (USD)

Cash-out amount (USD)

Roll closing costs into the new loan

Assumptions

Fixed-rate style amortization for both loans using the inputs you enter.
Break-even = cash closing costs ÷ monthly P&I savings.
Rolling costs into the loan treats cash closing as $0 and increases the new balance.
Rates are user-entered — survey rates may pre-fill defaults only.

Break-even months = cash closing costs ÷ (current P&I − new P&I).

What is break-even?

How long payment savings need to cover cash closing costs.

Are taxes included?

No — this focuses on P&I for a comparable estimate.

What does break-even mean here?

Roughly how many months of payment savings it takes to recover cash closing costs.

Should I refinance based on this alone?

No. Credit, fees, taxes, and how long you keep the loan also matter.

Estimates only. See Disclaimer.