Mortgage Refinance & Break-Even Calculator
Compare the remaining cost of your current fixed-rate mortgage with a proposed refinance and estimate how long monthly payment savings would take to recover closing costs.
Compare current loan and refinance
Current modeled P&I—
Monthly payment savings—
Simple break-even—
Current remaining interest—
New-loan interest—
Remaining interest/cost difference—
Break-even = upfront closing costs ÷ monthly P&I savings when the new modeled payment is lower. Taxes, insurance and PMI are excluded because they may not change solely from refinancing.
Why term matters
A lower rate can reduce the payment while a longer new term can increase total interest. Compare both the break-even period and remaining interest cost rather than relying on payment alone.
Method references
Bankrate, NerdWallet and Rocket Mortgage all describe the simple refinance break-even calculation as closing costs divided by monthly savings. Reviewed September 30, 2026.