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Refinance break-even calculator
Planning calculator
See when refinancing earns its keep.
Compare your current loan with a new loan. Include the net refinance costs you pay in cash, and choose how long you expect to keep the new loan.
Net borrowing-cost savings / 5 years$18,082After cash-paid refinance costs
- Current principal & interest
- $2,883
- New principal & interest
- $2,463
- Monthly payment reduction
- $420
- Simple payment break-even
- 15 months
- First cost break-even
- 15 months
- Current balance at horizon
- $372,227
- New balance at horizon
- $373,349
Educational estimate only. Actual qualification, costs, and loan terms vary.
How this estimate works
Borrowing cost compares interest plus cash-paid refinance costs over the same period, so paying principal is not treated as an expense. Payment break-even alone ignores changes in equity and loan length. The first cost break-even can reverse later when loan terms differ; compare the net savings at your chosen holding period. This model uses the same starting balance, excludes cash-out, financed costs, escrow deposits, taxes, insurance, mortgage insurance, and investment returns. Enter net fees after lender credits.