Refinance Break-Even Calculator
Determine if refinancing your mortgage makes financial sense by calculating your break-even point and potential long-term savings.
When to Consider Refinancing
- When interest rates have dropped significantly (usually by at least 0.5-1%)
- When you plan to stay in your home long enough to recoup closing costs
- When your credit score has improved significantly since your original loan
- When you want to move from an adjustable-rate to a fixed-rate mortgage
- When you need to tap into home equity for major expenses
Understanding Break-Even Point
The break-even point is when the savings from your new, lower interest rate equal the costs of refinancing. After this point, you'll start seeing actual financial benefits from refinancing.
Calculation Example:
If refinancing costs $4,000 and saves you $200 per month, the break-even point is 20 months ($4,000 ÷ $200 = 20). If you plan to stay in your home for more than 20 months, refinancing likely makes financial sense.
Ready to explore refinance options?
Compare personalized refinance offers from multiple lenders on our platform to find the best rates and terms.