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Mortgage Refinance Break-Even Calculator

Find how many months it takes for a lower mortgage payment to pay back refinance closing costs, and whether you break even before you move.

Tool inputs stay in your browser · optional AI search sends your query

Good to know: Scope: a break-even estimate in US dollars for replacing one fixed-rate monthly mortgage with another, using the Federal Reserve’s refinancing worksheet: monthly savings (current payment minus new payment), optionally reduced by your tax rate as the worksheet does, then total closing costs divided by those savings gives the months to recover your costs. Payments are principal and interest only, worked out from your balance, rate and months left. Not included: property tax, insurance and escrow, adjustable-rate or interest-only loans, cash-out amounts, mortgage insurance changes, lender approval and your credit score. Add points and any prepayment penalty on your current loan to the closing costs. The 3% to 6% closing-cost range shown is from the Federal Reserve guide; use the real figures from your Loan Estimate. Everything stays in this browser tab; nothing is sent or saved. Independent ToolsKo estimate. Sources reviewed November 11, 2026.

How to use it (step by step)

  1. 1Enter what you owe on your mortgage now, its interest rate and how many years are left. Your monthly statement shows the balance and rate.
  2. 2Enter the new rate and loan length a lender offered, plus the total closing costs from the Loan Estimate, and choose whether you pay them in cash or add them to the loan.
  3. 3Read the break-even months and compare them with how long you plan to stay in the home. Also check the total payments left: a longer new loan can cost more overall even with a lower monthly payment.

Words to know

Break-even point
The month when what you saved on lower payments equals what you paid to refinance. Move before then and you lose money on the refinance.
Closing costs
One-time fees to get the new loan, such as the appraisal, title and lender fees. Your Loan Estimate lists them.
Points
An optional upfront fee to get a lower rate. One point costs 1% of the loan amount.
Prepayment penalty
A fee some loans charge for paying them off early. It makes break-even take longer.

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Sources & methods

References checked November 11, 2026. Read each tool’s scope and assumptions before relying on its result.

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