Calculator · Refinance break-even
Refinance break-even calculator.
A lower rate doesn't automatically make a refinance smart. Compare closing costs, monthly savings, term reset, and the holding period you actually expect. Planning only. Not a loan offer or rate quote.
Three things that decide whether a refi actually pencils.
Anchor in honest closing costs
Refi closing costs are real — lender fees, title, recording, prepaids, escrow setup. A break-even that lowballs these makes the refinance look better than it is. Conservative inputs beat flattering ones.
Use a realistic holding period
Break-even only matters if you actually stay long enough to cross it. Use the holding period you plan on — not the maximum possible. Sell or refinance again before break-even and the refi cost you money.
Compare structures, not just rates
Lower rate with points, near-par, and higher rate with lender credit all break even at different months. Run two or three structures on the same file and pick the one that wins for your timeline.
Current loan
New loan scenario
Compare a hypothetical new loan against your current trajectory. Presets below seed three pricing scenarios — adjust any field to model your own.
Decision outputs
Savings shown here are principal and interest only unless otherwise stated.
Estimate only. Not a loan quote, approval, or commitment to lend. Interest rate inputs are not APRs. Final terms depend on verified borrower details, loan structure, property details, and market conditions.
Monthly savings is one variable.
Term reset is a real cost
A 30-year refinance restarts amortization. Lower monthly on its own isn't a win if you're paying interest for ten more years. Break-even on monthly savings doesn't capture term-reset cost.
MI behavior and escrow timing
Mortgage insurance changes, existing escrow refunds, and new escrow setup all move real cash flow around closing. A break-even screen rarely sees those nuances — but the file does.
It is not a refinance offer
Output is a planning estimate. Not a quote, not a rate lock, not an approval, not a commitment to lend. Real refi terms depend on credit, income, assets, property, loan program, and current pricing.
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Planning tool only. This calculator provides estimates to help evaluate scenarios. It is not a loan offer, not a rate quote, and not a commitment to lend.
No APR and no Loan Estimate. Interest rate inputs are not APRs and results do not represent a Loan Estimate. Your official lender Loan Estimate and closing disclosure control final terms and costs.
Assumptions and limits. Results are based on the inputs you provide and standard amortization math. They do not include all settlement charges, escrows, prepaid items, taxes, insurance, HOA dues, mortgage insurance changes, credit score impacts, or underwriting conditions.
No approval or qualification. This calculator does not determine approval, eligibility, ability to repay, or affordability.
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