Refinance break-even calculator

Refinancing isn't free — closing costs typically run a few percent of the loan. The right question isn't "is the new rate lower?" but "do I keep the loan long enough for the savings to cover the costs?" This calculator finds that break-even month and shows the lifetime interest trade-off. All math happens in your browser — nothing is sent anywhere.

How to read the result

• Break-even month: the month your accumulated monthly savings finally exceed what you paid in closing costs. If you sell or refinance again before then, the refinance cost you money.
• Lifetime interest difference: the number people skip — and the one that matters most. Restarting a 30-year clock at a lower rate can still cost more total interest than keeping a higher rate with fewer years left.
• Monthly savings: real, but only half the story without the two numbers above.

Common refinance reasons (beyond the rate)

• Removing mortgage insurance once you have enough equity.
• Switching from an adjustable rate to a fixed rate for payment stability.
• Shortening the term to build equity faster — higher payment, much less interest.
• Cash-out refinancing to tap equity — this raises the balance and the risk, and deserves its own careful math.