Refinance break-even calculator

The only number that matters: how long until refinancing pays for itself.

Read this before the numbers

The interest rate on this page is a number you choose so you can model a payment. It is not a rate being quoted to you, not an advertisement of terms, and not an offer or a commitment to lend.

Your actual interest rate and APR depend on your credit, loan program, occupancy, property type, loan amount, down payment, and the market at the time you lock. Rates, terms and program availability change and are subject to credit approval. The real figures arrive on a Loan Estimate after you apply — that is the document to compare, not a calculator.

Erik Miller, Mortgage Expert · NMLS #263103 · Patriot Home Mortgage · Company NMLS #715386 · Licensed in Arizona · Equal Housing Lender

You break even in

—

Current payment—

New payment—

Monthly saving—

Yearly saving—

Interest left on current loan—

Interest on new loan—

Lifetime interest change—

Estimates for planning only. Not a commitment to lend.

Common questions

Questions we get asked

What does break-even actually mean?

It is your closing costs divided by your monthly saving. If refinancing costs $5,200 and saves $210 a month, you are whole again in about 25 months. Sell or refinance again before then and the refinance cost you money.

My payment drops but the calculator says I pay more interest. Why?

Because you restarted the clock. Replacing 26 remaining years with a fresh 30 stretches repayment out further, and interest accrues for those extra years. If your goal is cash flow that can still be the right call — just make the trade knowingly. Ask us to price a 20 or 15-year term alongside it.

Can I roll the closing costs into the loan?

Usually yes. It preserves your cash but increases the balance, so the break-even math shifts. We will show you both versions before you decide.

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