Mortgage Refinance Calculator — Break-Even & Savings
Refinancing only pays off if you stay past the break-even point — the month your accumulated savings exceed closing costs. Compare your current loan to today's rates and get a clear verdict in dollars and months.
- Break-even point
- 1 yr 8 mo
- New monthly payment
- $1,798.65
- Current monthly payment
- $2,112.58
How this calculator works
- The new payment re-amortizes your balance at the new rate and term. Monthly savings × months until break-even = closing costs.
- Beware the term reset: dropping your payment by stretching 27 remaining years back to 30 can cost more total interest even at a lower rate. Compare lifetime interest, not just the payment.
Frequently asked questions
When is refinancing worth it?
A common rule: the new rate should be at least 0.75–1% lower and you should plan to stay past break-even (typically 2–4 years). No-closing-cost refis trade fees for a slightly higher rate.
What are typical closing costs?
2–5% of the loan amount — origination, appraisal, title insurance, and recording fees. On a $300k loan, expect $6,000–$12,000 unless rolled into the rate.
Cash-out vs rate-and-term?
Rate-and-term just replaces your loan. Cash-out borrows above your balance against equity, usually at a slightly higher rate — popular for renovations and debt consolidation.
Related calculators
Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.