Calculators
Refinance Break-Even Calculator
Compare your current payment with a new loan, see how long it takes for a refinance to pay for itself, and check the total cost over time.
Estimated monthly savings
$289
Current payment
$2,950
New payment
$2,661
Principal and interest only.
- Break-even point
- 1 year, 9 months
- Total paid, current loan
- $955,710
- Total paid, new loan
- $964,036
Refinancing may lower your monthly payment, but total finance charges may be higher over the life of the loan.
How to read your results
- Monthly savings: the difference between your current principal-and-interest payment and the new one.
- Break-even point: closing costs divided by your monthly savings. If you’ll keep the new loan longer than this, the refinance may pay for itself.
- Total paid: everything you’d pay from today on each loan, including closing costs paid up front. A longer new term can raise this even when the rate drops.
- Cash out: increases your new loan amount. Break-even doesn’t apply because part of the new loan is cash you receive.
Taxes, insurance and mortgage insurance aren’t included because they usually don’t change when you refinance. See the refinance options we offer.
FAQ
Refinance questions
What is a refinance break-even point?
It’s how long it takes for your monthly savings to cover the cost of refinancing. If closing costs are $6,000 and you save $200 a month, you break even after 30 months. Refinancing generally makes more sense if you’ll keep the loan longer than that.
Why could I pay more interest even with a lower rate?
A new loan starts a new term. Stretching your remaining balance over a longer term lowers the payment but can increase the total interest you pay. Choosing a shorter term can help you avoid that.
Should I add closing costs to the loan?
Adding costs to the loan means less cash at closing, but a larger balance and more interest over time. Paying them up front keeps the balance lower. The calculator shows both.
Calculators
More ways to run the numbers
This calculator is for illustration only. It is not an offer of credit or a commitment to lend. The example interest rates are not APRs, may not be available to you and change daily.
Is now the right time to refinance?
We’ll compare your options from a wide network of lenders and show you the real numbers.