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Refinance Break-Even Calculator

Find how many months until a refinance pays for itself.

National average benchmark, not a quote. Edit to your scenario.

Break-even point

74 mo

About 6.2 years to recover your costs

New monthly payment (P&I)$2,018
Monthly savings$82
Refinance costs$6,000

Estimates only. Your actual numbers depend on your loan, credit, and property. A longer term can lower your payment but add interest over time. Compare total cost, not just the monthly.

How do I read the break-even result?

The result is the number of months until your monthly savings add up to what the refinance cost you. Fewer months means the refi pays off sooner. If you see "no break-even," your new payment isn't lower with the numbers you entered, so a refinance probably wouldn't save you money in that scenario.

What costs go into a refinance?

A refinance usually has costs like lender fees, title work, an appraisal, and recording fees. Add them up and enter the total. Some lenders offer to roll costs into the loan or take a slightly higher rate to cover them, which changes the math. I can help you compare the real all-in cost before you commit.

Common questions

Your break-even point is how many months it takes for your monthly savings to cover the cost of refinancing. If a refi costs $6,000 and saves $200 a month, you break even in about 30 months. After that, the savings are yours. It's a quick way to judge if a refi is worth it.

Refinancing may make sense when your monthly savings recover the costs well before you plan to sell or pay off the loan, or when you want to change your loan type or term. If you'd move before breaking even, it often doesn't pay off. The break-even number helps you see that clearly.

Stretching back out to a new 30-year term can lower your monthly payment but add years of interest, so you could pay more overall even at a lower rate. That's why it helps to compare total cost, not just the monthly number. A shorter term may save more long-term even if the payment is higher.

Last updated: June 5, 2026

This calculator is for educational estimates only. It isn't an offer to lend, a quote, or a commitment to make a loan. Your actual numbers depend on your loan, credit, property, and other factors. Rates and programs may change without notice.

Estimates are great. A real plan is better.

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