🧮 Free Refinance Break Even Calculator
Enter Your Information
Your Results
Ready to Start Your Refinance?
Get personalized refinance quotes from top lenders and lock in your savings today.
Deciding whether to refinance your mortgage is one of the most important financial decisions you'll make. Our free refinance break-even calculator helps you determine exactly when refinancing will start saving you money and how much you'll save over time.
Quick Answer
The break-even point is when your monthly savings equal your closing costs. If you plan to stay in your home longer than the break-even period, refinancing typically makes financial sense.
What Is the Refinance Break Even Point?
The refinance break-even point is the time it takes for your monthly savings from a lower interest rate to equal the closing costs you paid to refinance. After this point, you start saving money every month.
Break Even Formula
Excellent
Strong refinance candidate
Good
Consider your stay timeline
Caution
May not be worth it
Frequently Asked Questions
How do I calculate my refinance break-even point?
Divide your total closing costs by your monthly savings. For example, if closing costs are $5,000 and you save $200/month, your break-even point is 25 months (just over 2 years).
What's a good break-even point for refinancing?
Generally, a break-even point of 2 years or less is excellent, 2-5 years is good if you plan to stay, and over 5 years may not be worth it unless you have other compelling reasons to refinance.
Should I refinance if rates dropped 0.5%?
A 0.5% rate drop is generally the minimum to consider refinancing. However, the decision depends on your break-even analysis, closing costs, and how long you plan to stay in your home.
What closing costs should I expect when refinancing?
Typical refinancing closing costs range from 2-5% of your loan amount, including origination fees, appraisal, title insurance, and other fees. On a $400,000 loan, expect $8,000-$20,000 in costs.
Can I refinance with no closing costs?
Some lenders offer "no-cost" refinances, but they typically roll the costs into your loan balance or charge a higher interest rate. Always compare the total cost over time.
Start Your Refinance Journey Today
Use our calculator results to make an informed decision and get quotes from top refinance lenders.
Get Your Refinance Quotes Now