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Estimate the monthly housing cost, then test payment and refinance choices.
Refinance Break-Even Calculator
Estimate monthly principal-and-interest savings, cash closing-cost payback time, and undiscounted lifetime interest difference for a fixed-rate, rate-and-term mortgage refinance.
Live
Parameters
R Reset
Presets
$320,000.00
$10,000.00$10,000,000.00
$
6.75%
0.10%25.00%
%
300
12480
5.50%
0.10%25.00%
%
30
540
$4,500.00
$0.00$50,000.00
$
Analytics Dashboard
Break-Even Period
Excellent12 Months
Monthly Payment Savings$393.99 / mo
Current Monthly P&I$2,210.92
New Monthly P&I$1,816.92
Quick Closing Cost RecoupmentImprove planning safety margin
Compare official Loan Estimates and confirm that your expected holding period exceeds the modeled break-even period before deciding.
The simple modeled cash-cost recoupment period is no more than 24 months.
InterpretationShorter modeled recoupment band: no more than 24 months under the entered cash-cost and P&I assumptions. Quick Closing Cost Recoupment: The simple modeled cash-cost recoupment period is no more than 24 months.
How to Use the Refinance Break-Even Calculator
A refinance can change both your mortgage rate and repayment term. This calculator estimates a simple cash break-even period by dividing user-entered cash closing costs by modeled monthly principal-and-interest savings. It is a screening comparison—not a loan offer, approval, or complete suitability analysis.
Input variables:
- Current Loan Balance ($): The remaining principal balance on your current mortgage.
- Current Interest Rate (%): Your existing annual mortgage interest rate.
- Remaining Months on Loan: Number of remaining monthly payments on your current loan.
- New Interest Rate (%): The proposed interest rate for the refinanced mortgage.
- New Loan Term (Years): The total term length for the new mortgage.
- Refinance Closing Costs ($): Total upfront fees (origination, title, appraisal) associated with refinancing.
Mortgage Amortization Explained: How Payments, Principal & Interest Work
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Read Full Guide →Mortgage Worked Example Pack: 5 Real-World Scenarios
Step-by-step mathematical walkthroughs of 30-year fixed, 15-year accelerated, extra prepayment payoff, refinance break-even, and low down payment PMI scenarios.
Read Full Guide →Refinance Break-Even Decision Guide: When Does Refinancing Pay Off?
Learn how to calculate your refinance break-even period, evaluate upfront closing costs, avoid loan term reset traps, and decide when to lock a new rate.
Read Full Guide →What is a mortgage refinance break-even period?
In this calculator, it is the number of whole months required for modeled principal-and-interest payment savings to equal user-entered cash closing costs. It is a screening estimate and is not a complete comparison of loan offers.
How do closing costs affect refinance savings?
Higher cash closing costs extend the simple recoupment period. Costs financed into the new balance, lender credits, points, prepaid items, and escrow funding require a fuller Loan Estimate comparison and are not modeled here.
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