Compare current and refinanced mortgage payments, interest, closing costs, and the monthly break-even point.
USD inputs · transparent calculation assumptions
Instant updates as inputs change
Data is calculated in this browser only
USD inputs · transparent calculation assumptions
Monthly payment savings$303.40
Current monthly payment
$2,070.45
New monthly payment
$1,767.05
Closing costs
$6,400.00
Break-even time
21.1 months
Lifetime interest savings before costs
$59,533.03
Lifetime savings after costs
$53,133.03
Debt-adjusted savings over selected stay
$31,001.70
Calculation notes
Understand the Mortgage refinance break-even calculator
Monthly savings = current payment − new payment. Simple break-even months = closing costs / positive monthly savings. The selected-stay comparison also adjusts for each loan’s remaining balance. The calculation runs locally and keeps cash-flow timing consistent with the stated assumptions.
Formula and logic
How is a mortgage refinance break-even point calculated?
Monthly savings = current payment − new payment. Simple break-even months = closing costs / positive monthly savings. The selected-stay comparison also adjusts for each loan’s remaining balance.
Worked example
How many months recover $6,400 of closing costs at $200 monthly savings?
$6,400 closing costs and $200 monthly payment savings produce a simple break-even point of 32 months, before tax effects and other loan-specific charges.
How to read the result
Can a lower refinance payment increase lifetime interest?
A lower payment can come from extending the term and may not reduce lifetime interest.
Compare both break-even months and debt-adjusted savings at the year you expect to sell or refinance again.
Limits and assumptions
Why compare remaining balances at the expected sale year?
Assumes fixed-rate fully amortizing loans and treats closing costs as cash paid. It excludes points, taxes, escrow changes, prepayment penalties, cash-out proceeds, and tax deductions.