Refinance Break-Even Calculator.
The single most important refinance number is the break-even month — how long it takes for monthly savings to recoup the closing costs. Enter your numbers below.
Your current loan
Your refinance terms
For estimation only. This calculator illustrates monthly principal & interest savings and a basic break-even calculation based on your inputs. It does not include changes to escrow (taxes, insurance), PMI/MIP changes, or the time value of money. It is not a loan offer, rate quote, pre-qualification, or commitment to lend. Actual savings depend on credit, property, program, and current rates. Contact Debbie for a personalized analysis.
How to read your break-even number
Under 24 months? A refinance is almost always worth it if you plan to stay in the home for at least that long. The savings beyond the break-even date are pure benefit.
24 to 48 months? Worth refinancing if you're confident you'll stay in the home and not refinance again in the next 4–5 years.
Over 48 months? Refinance becomes harder to justify unless you have a specific reason (consolidating debt, eliminating PMI, switching from ARM to fixed). Consider whether a no-closing-cost refinance structure might make more sense — Debbie can run that comparison.
What this calculator doesn't capture
A few things to keep in mind:
- Resetting the amortization clock — refinancing into a new 30-year loan stretches your remaining term back to 30 years, which means more total interest paid over the life of the loan, even at a lower rate. The "Lifetime Savings" number above accounts for this.
- Tax implications — mortgage interest may be tax-deductible. Consult a tax professional.
- PMI changes — if you've gained equity since your original loan, refinancing might let you drop PMI, which is additional savings beyond the rate reduction.
- No-closing-cost structures — some refinances waive closing costs in exchange for a slightly higher rate. This can be the right choice when you don't plan to keep the loan long enough to recoup traditional closing costs.
Get a real refinance quote
This calculator uses estimates. For actual rates and a precise refinance analysis based on your credit, current loan, and property, schedule a free 15-minute consultation. Debbie will run a side-by-side comparison from multiple wholesale lenders.