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Calculate when refinancing pays back its closing costs based on monthly savings.
Calculate the break-even point of refinancing your mortgage. Live national 30-yr rate: 6.49%.
Break-Even
24 months
Save $239/mo
Old Payment
$2,007
New Payment
$1,768
Out of Pocket
$5,500
Lifetime Savings
$20,274
Strong refi candidate
You break even in ~24 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.
Calculate the break-even point of refinancing your mortgage. Compare your old payment vs new, account for closing costs, and see lifetime interest savings. Pulls the live national 30-year rate.
Enter your current balance, rate, and months remaining.
Add the new rate, term, and estimated closing costs.
Choose whether to pay closing costs at signing or roll them in.
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.
Calculate monthly mortgage payments with taxes and interest.
Browse estimated 30-year and 15-year mortgage rates by US state and city.
How much house can you afford? Uses the 28/36 lender rule with live mortgage rates.