AbraCalc

Refinance Break-Even Calculator

Calculate how long it takes to break even on mortgage refinancing costs with a lower interest rate.

Embed this tool on your site

How to use this tool

  1. Enter current monthly payment, new monthly payment and closing costs in the fields above.
  2. Results update instantly as you type — or click Calculate.
  3. Read your break-even period and the full breakdown beneath it.

Refinancing only makes sense if you plan to stay long enough to recoup the closing costs through lower payments.

Frequently asked questions

What is the refinance break-even point?
The break-even point is when your cumulative savings from the lower monthly payment equal the upfront closing costs you paid to refinance.
What if I plan to sell before the break-even?
If you'll move before break-even, refinancing costs you money. Consider a no-closing-cost refinance (usually a slightly higher rate) if you're uncertain about staying.

References & sources