Is refinancing worth it? Find your breakeven point.
Enter your current mortgage and the refinance offer you're considering. We'll tell you the exact month it pays for itself — and whether it ever does.
Cumulative savings over time
Side-by-side comparison
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Compare live ratesHow the breakeven math works
Most calculators use a shortcut: closing costs divided by monthly savings. That's fine when nothing else changes, but it breaks the moment you change your term or roll costs into the loan. This calculator compares the total cost of each loan over the time you'll actually stay in the home:
Total cost = cash paid at closing + all monthly payments + remaining balance at the end of your stay. Your breakeven month is the first month the refinance's total cost drops below your current loan's. That one number accounts for rolled-in closing costs, longer or shorter terms, and payment changes automatically.
Refinancing questions, answered
How do you calculate a refinance breakeven point?
Divide your total closing costs by your monthly payment savings. A $7,000 closing cost with $300/month in savings breaks even in about 23 months. Our calculator goes further by comparing the full total cost of both loans — including your remaining balance — which is more accurate when you change loan terms or roll costs into the new loan.
What is a good breakeven point for refinancing?
A common rule of thumb: break even in under 2–3 years, and only refinance if you'll stay in the home past that point. If your breakeven is 5 years but you plan to move in 3, the refinance loses you money.
How much are refinance closing costs?
Typically 2–5% of the loan amount — $7,000 to $17,500 on a $350,000 loan. Lender fees, appraisal, title insurance, and prepaid escrow make up most of it. You can pay cash at closing or roll them into the new loan balance; rolling them in means you pay interest on them.
Is it worth refinancing for 1% lower?
Often yes, but not always. On a $350,000 balance, dropping from 7% to 6% saves roughly $220/month on a 30-year term — but $7,000 in closing costs takes about 32 months to recover. It comes down to your costs and how long you'll stay.
Does a longer term wipe out the savings?
It can. Restarting a 30-year clock usually lowers your payment but increases lifetime interest. That's why the comparison above shows both monthly savings and total cost over your stay — the two numbers tell different stories.
Should I roll closing costs into the loan?
Rolling costs in avoids cash out of pocket but raises your loan balance, so you pay interest on the fees for the life of the loan. Toggle the checkbox above to see exactly how much that choice costs you.