Refinance Break-Even Calculator
Enter your closing costs and the monthly savings to find how long a refinance takes to pay off.
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Enter the closing costs and monthly savings to see the break-even.
Worked example
With these example inputs:
- Closing costs$4,000
- Monthly savings$200
Break-even (months): 20
Frequently asked questions
How is the break-even point found?
Divide the closing costs by the monthly savings from the new loan. Costs of $4,000 against $200 a month in savings break even in 20 months.
Why does break-even matter?
If you plan to move or refinance again before reaching break-even, the upfront cost outweighs the savings. The shorter the break-even, the sooner a refinance pays for itself.