Include taxes/insurance?

No—P&I only. Add escrow separately to budget total payment.

Add points to closing costs; subtract lender credits to see net costs.

This focuses on rate/term; cash-out changes balance and may change rate/fees.

You can model an ARM by entering the current rate as a proxy; payments will differ in reality.

Not included—breakeven is simple months via payment savings.

finance calculator

Refinance Breakeven Calculator

Compare your current mortgage to a refinance mid-term to see payment change, interest difference, and breakeven months on closing costs.

Results

Current payment (P&I): $1,812
Interest remaining (current): $328,713
New payment (P&I): $1,634
Interest over new term: $308,241
Monthly payment change: $178
Breakeven months on closing costs: 25.33

How to use this calculator

Enter current balance, rate, original term, and months elapsed.
Enter new rate, new term, and closing costs.
Review current vs new payment, interest differences, monthly savings, and breakeven months.

Inputs explained

Current balance: Remaining principal on your existing mortgage.
Current rate: Current APR.
Original term / months elapsed: To derive remaining term for current loan.
New rate/term: Rate and term for the refinance.
Closing costs: Refinance costs to recoup via payment savings.

How it works

Current payment/interest remaining computed from current balance, rate, and remaining term.

New payment/interest computed from current balance at the new rate/term plus closing costs.

Monthly savings = current P&I − new P&I. Breakeven = closing costs ÷ monthly savings.

Formula

Current payment = P × r(1+r)^n / [(1+r)^n − 1]
New payment = P × r(1+r)^n / [(1+r)^n − 1]
Savings = Current payment − New payment
Breakeven = Closing costs ÷ Savings

When to use it

Checking if a refi lowers payment enough to justify costs.
Comparing rolling back to a new 30-year vs a shorter term.
Estimating interest saved/spent when resetting the clock.

Tips & cautions

If you stretch back to 30 years, payment drops but total interest may rise—check new interest line.
Subtract lender credits or add points to closing costs to see true breakeven.
Use realistic closing costs; they vary by lender/region.
P&I only; does not include taxes/insurance/PMI.
Assumes fixed-rate amortization for both loans.
No time value of money—simple breakeven via payment savings.

Worked examples

$280k balance, 6.5%, 30-year orig, 24 months in → new 5.75%/30yr, $4,500 costs

Current P&I ≈ $1,772
New P&I ≈ $1,635
Savings ≈ $137/mo
Breakeven ≈ 32.8 months

$320k balance, 7%, 30-year orig, 60 months in → new 5.8%/25yr, $5,000 costs

Current P&I ≈ $2,129
New P&I ≈ $2,057
Savings ≈ $72/mo
Breakeven ≈ 69.4 months

Deep dive

This refinance breakeven calculator compares your current mortgage to a new rate/term mid-stream to show payment change, interest difference, and breakeven months on closing costs.

Use it to decide if refinancing now is worth the fees or if sticking with your current loan makes more sense.

FAQs

Include taxes/insurance?: No—P&I only. Add escrow separately to budget total payment.
Points and credits?: Add points to closing costs; subtract lender credits to see net costs.
Cash-out refi?: This focuses on rate/term; cash-out changes balance and may change rate/fees.
ARM to fixed?: You can model an ARM by entering the current rate as a proxy; payments will differ in reality.
Time value of money?: Not included—breakeven is simple months via payment savings.

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Estimate only. Actual refi terms, fees, and taxes/insurance vary. Confirm with your lender for precise numbers.