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Calculate the break-even point of refinancing your mortgage. Live national 30-yr rate: 6.36%.
Break-Even
21 months
Save $263/mo
Old Payment
$2,007
New Payment
$1,744
Out of Pocket
$5,500
Lifetime Savings
$28,864
Strong refi candidate
You break even in ~21 months — well under the 24-month rule of thumb.
Mortgage Refinance Break-Even Calculator divides closing costs by monthly payment savings to find the break-even month, then computes lifetime savings by comparing total cost of current vs. refinanced mortgage over their remaining terms.
Mortgage Refinance Break-Even Calculator is a high-performance utility designed to help users streamline their workflow. Built with modern web technologies, it ensures fast processing times and high-quality outputs directly in your browser.
Break-even months = out-of-pocket closing costs ÷ monthly payment savings. If costs are rolled into the loan, break-even is 0 but lifetime savings are reduced because you pay interest on the closing cost amount. Lifetime savings = current loan total remaining payments − (new loan total payments + out-of-pocket closing costs).
Under 24 months is excellent. 24–48 months is reasonable if you plan to stay in the home that long. Above 48 months, the refi rarely pays off unless rates drop further or you cash-out for a better-yielding use.
Rolling avoids out-of-pocket but increases your loan principal and lifetime interest. It often makes sense if you have alternative uses for the cash (paying down higher-APR debt, investing).
Yes — lenders cover closing costs in exchange for a slightly higher rate. Compare carefully: the rate bump often costs you more over the loan than you'd save in fees.
Old guidance said refi if you can drop your rate by 1+ point. With today's higher closing costs, the break-even period is a more reliable metric than a fixed rate-drop threshold.
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