Refinance Break-even Calculator
Put a new rate and term next to what you owe now, subtract the cost of getting there, and find the month the refinance turns positive.
The loan you have
The loan you are considering
Illustrative — not a quoted rate.
Lender fees, title, appraisal, recording.
Added to the new balance.
Lower each month by
$413
You are back to level at payment 20
A longer new term can lower the payment and still cost more overall. Both numbers are above on purpose.
Starts negative by the amount of the closing costs and climbs by the monthly saving. The marked line is zero — the month the refinance has paid for itself.
Schedule for the new loan
30 years, running totals at each year end.
| Year | Paid in year | Interest | Principal | Balance | Interest to date | Principal to date |
|---|---|---|---|---|---|---|
| Year 1 · 2026 | $27,915 | $23,150 | $4,765 | $383,235 | $23,150 | $4,765 |
| Year 2 · 2027 | $27,915 | $22,857 | $5,059 | $378,177 | $46,007 | $9,823 |
| Year 3 · 2028 | $27,915 | $22,545 | $5,371 | $372,806 | $68,551 | $15,194 |
| Year 4 · 2029 | $27,915 | $22,213 | $5,702 | $367,104 | $90,765 | $20,896 |
| Year 5 · 2030 | $27,915 | $21,862 | $6,053 | $361,051 | $112,626 | $26,949 |
| Year 6 · 2031 | $27,915 | $21,488 | $6,427 | $354,624 | $134,114 | $33,376 |
| Year 7 · 2032 | $27,915 | $21,092 | $6,823 | $347,801 | $155,206 | $40,199 |
| Year 8 · 2033 | $27,915 | $20,671 | $7,244 | $340,557 | $175,877 | $47,443 |
| Year 9 · 2034 | $27,915 | $20,224 | $7,691 | $332,866 | $196,102 | $55,134 |
| Year 10 · 2035 | $27,915 | $19,750 | $8,165 | $324,701 | $215,851 | $63,299 |
| Year 11 · 2036 | $27,915 | $19,246 | $8,669 | $316,032 | $235,098 | $71,968 |
| Year 12 · 2037 | $27,915 | $18,712 | $9,204 | $306,828 | $253,809 | $81,172 |
| Year 13 · 2038 | $27,915 | $18,144 | $9,771 | $297,057 | $271,953 | $90,943 |
| Year 14 · 2039 | $27,915 | $17,541 | $10,374 | $286,683 | $289,494 | $101,317 |
| Year 15 · 2040 | $27,915 | $16,901 | $11,014 | $275,670 | $306,396 | $112,330 |
| Year 16 · 2041 | $27,915 | $16,222 | $11,693 | $263,977 | $322,618 | $124,023 |
| Year 17 · 2042 | $27,915 | $15,501 | $12,414 | $251,562 | $338,119 | $136,438 |
| Year 18 · 2043 | $27,915 | $14,735 | $13,180 | $238,382 | $352,854 | $149,618 |
| Year 19 · 2044 | $27,915 | $13,922 | $13,993 | $224,390 | $366,776 | $163,610 |
| Year 20 · 2045 | $27,915 | $13,059 | $14,856 | $209,534 | $379,835 | $178,466 |
| Year 21 · 2046 | $27,915 | $12,143 | $15,772 | $193,762 | $391,978 | $194,238 |
| Year 22 · 2047 | $27,915 | $11,170 | $16,745 | $177,017 | $403,149 | $210,983 |
| Year 23 · 2048 | $27,915 | $10,137 | $17,778 | $159,239 | $413,286 | $228,761 |
| Year 24 · 2049 | $27,915 | $9,041 | $18,874 | $140,365 | $422,327 | $247,635 |
| Year 25 · 2050 | $27,915 | $7,877 | $20,038 | $120,327 | $430,204 | $267,673 |
| Year 26 · 2051 | $27,915 | $6,641 | $21,274 | $99,053 | $436,845 | $288,947 |
| Year 27 · 2052 | $27,915 | $5,329 | $22,586 | $76,466 | $442,173 | $311,534 |
| Year 28 · 2053 | $27,915 | $3,936 | $23,979 | $52,487 | $446,109 | $335,513 |
| Year 29 · 2054 | $27,915 | $2,457 | $25,458 | $27,029 | $448,566 | $360,971 |
| Year 30 · 2055 | $27,915 | $886 | $27,029 | $0 | $449,452 | $388,000 |
Share this result
Every figure you entered is in the address bar, so the link below reopens this page with exactly these numbers.
Ask a human about these numbers
A calculator cannot see your credit file, your assets or the property. A loan officer can.
Jeremy personally reviews every request. 60-minute response times during operating hours.
How to use the refinance break-even calculator
Enter your current balance, current rate and the years remaining on your loan.
Enter the new rate and the new term you are considering.
Add the estimated closing costs, and any cash you want to take out.
Read the new payment, the monthly change and the break-even month when the savings repay the costs.
Terms used in this calculator
- Break-even point
- The number of months it takes for the monthly savings from a refinance to add up to what the refinance cost. Staying past it means the refinance has paid for itself.
- Rate-and-term refinance
- A refinance that changes your rate, your term or both, without taking extra cash out.In the glossary : Rate-and-term refinance
- Cash-out refinance
- A refinance for more than you owe, with the difference paid to you in cash at closing.In the glossary : Cash-out refinance
- Closing costs
- Fees to set up the new loan, such as lender, appraisal, title and recording fees. They can often be paid in cash or rolled into the loan.In the glossary : Closing costs
- Loan-to-value ratio (LTV)
- The loan amount divided by the home's value. Lower LTV usually means better pricing and more options.In the glossary : Loan-to-value ratio (LTV)
- Lifetime interest
- The total interest you would pay over the rest of the loan. A lower payment on a longer term can still cost more in lifetime interest.
Frequently asked questions
Compare the monthly savings with the closing costs to find your break-even month, then ask whether you will keep the loan longer than that. Also look at lifetime interest, because restarting a 30-year term can lower the payment but raise the total cost.
If you have already paid several years on your loan, a new 30-year term spreads the balance over more time. That lowers the payment, but you may pay more interest overall. Try a term that matches your years remaining to compare fairly.
Often, yes, if you have enough equity. That avoids cash at closing but adds to the balance, so it slightly raises the payment and the break-even point. The calculator lets you test both ways.
Cash out increases the new loan amount, so the payment and lifetime interest go up even at a lower rate. It can still make sense to pay off higher-interest debt or fund improvements; compare the full picture before deciding.
Use an estimate from a Loan Estimate if you have one. If not, ask Jeremy for a quick estimate, since costs depend on the loan amount, title and appraisal fees and any points you choose to pay.
Yes. Jeremy can run a personalized refinance analysis across multiple wholesale lenders and show whether a refinance makes sense for you, with no obligation. These results are estimates until you have a quote.
More questions? See the full FAQ or request a personalized quote.