Refinance break-even calculator
A lower rate is not automatically a better deal. Find out exactly when a refinance starts saving you money.
Break-even point
21 mo
Monthly change on principal and interest: $308
You recover the $6,400 in closing costs in about 21 months and keep $19,438 after 7 years.
- Break-even
- 21 months1.8 years
- Net over your stay
- $19,438after 7 years
- Interest left, current loan
- $416,045
- New loan interest + costs
- $393,273
Lifetime difference: save $22,772
Book a callPrincipal and interest only; taxes and insurance usually stay the same. Estimates for illustration, not a rate quote or commitment to lend.
Starts below zero by the closing costs and climbs by the monthly saving. The thin vertical line marks the years you plan to stay.
Show the data as a table
| Year | Net savings to date |
|---|---|
| At closing | −$6,400 |
| Year 1 | −$2,709 |
| Year 2 | $982 |
| Year 3 | $4,673 |
| Year 4 | $8,364 |
| Year 5 | $12,055 |
| Year 6 | $15,747 |
| Year 7 | $19,438 |
| Year 8 | $23,129 |
| Year 9 | $26,820 |
| Year 10 | $30,511 |
| Year 11 | $34,202 |
| Year 12 | $37,893 |
| Year 13 | $41,584 |
| Year 14 | $45,275 |
| Year 15 | $48,966 |
| Year 16 | $52,658 |
| Year 17 | $56,349 |
| Year 18 | $60,040 |
| Year 19 | $63,731 |
| Year 20 | $67,422 |
| Year 21 | $71,113 |
| Year 22 | $74,804 |
| Year 23 | $78,495 |
| Year 24 | $82,186 |
| Year 25 | $85,877 |
| Year 26 | $89,569 |
| Year 27 | $93,260 |
| Year 28 | $69,764 |
| Year 29 | $46,268 |
| Year 30 | $22,772 |
New loan amortization schedule360 payments, paid off Sep 2056. Select a year to see its months.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| $3,726 | $19,769 | $314,274 | |
| $3,966 | $19,530 | $310,308 | |
| $4,221 | $19,275 | $306,087 | |
| $4,493 | $19,003 | $301,594 | |
| $4,782 | $18,714 | $296,812 | |
| $5,089 | $18,407 | $291,723 | |
| $5,416 | $18,079 | $286,307 | |
| $5,765 | $17,731 | $280,542 | |
| $6,136 | $17,360 | $274,406 | |
| $6,530 | $16,965 | $267,876 | |
| $6,950 | $16,545 | $260,926 | |
| $7,397 | $16,098 | $253,528 | |
| $7,873 | $15,623 | $245,655 | |
| $8,380 | $15,116 | $237,275 | |
| $8,919 | $14,577 | $228,356 | |
| $9,492 | $14,003 | $218,864 | |
| $10,103 | $13,393 | $208,761 | |
| $10,753 | $12,743 | $198,008 | |
| $11,444 | $12,051 | $186,564 | |
| $12,181 | $11,315 | $174,384 | |
| $12,964 | $10,532 | $161,420 | |
| $13,798 | $9,698 | $147,622 | |
| $14,685 | $8,810 | $132,936 | |
| $15,630 | $7,866 | $117,306 | |
| $16,635 | $6,860 | $100,671 | |
| $17,705 | $5,790 | $82,966 | |
| $18,844 | $4,652 | $64,122 | |
| $20,056 | $3,440 | $44,066 | |
| $21,346 | $2,149 | $22,719 | |
| $22,719 | $776 | $0 |
Figures are estimates for illustration only. Break-even is closing costs divided by the monthly saving. A longer new term can lower the payment and still cost more interest over the life of the loan.
How to read your result.
Break-even in months
Closing costs divided by monthly savings. If you will move or refinance again before then, the refinance loses money.
Watch the term reset
Refinancing into a new 30-year loan stretches your balance. Compare a matching term too, so savings are not just time.
Net savings over your stay
Monthly savings times the months you expect to stay, minus costs. This is the number that matters most.
No-cost options
A slightly higher rate with lender credits can remove closing costs and make break-even immediate.
Calculator questions.
Still wondering about something specific? Text or call and you will hear back from Marcus, usually within two hours.
For planning, 2% to 3% of your balance is typical. Your real Loan Estimate will list lender fees, title, appraisal and recording costs.
No. Taxes and insurance do not change because you refinance, so this calculator compares principal and interest only.
Check your latest mortgage statement for the maturity date, or count years since your loan started and subtract from the original term.
A note from Marcus
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