Refinance break-even calculator
Compare a remaining fixed-rate loan with a modeled replacement loan. Calculations stay on this device and do not create a lender offer or recommendation.
Compare your assumptions
Use the balance you want to compare, not an original loan amount.
Note rate, not APR.
An assumption only—not a quote or offer.
Enter modeled up-front costs. Does not calculate APR or points.
Used only to compare timing with the payment-only break-even.
Example estimate
Payment-only break-even in about 31 months
$239.25 lessprincipal and interest each month
The payment-only break-even falls within the 5-year horizon.
Correct the highlighted field to update your estimate. The last valid estimate remains shown.
- Keep: scheduled principal and interest
- $2,455.83
- Refinance: scheduled principal and interest
- $2,216.58
- Modeled up-front closing costs
- $7,200.00
- Keep: modeled payoff
- 30 years
- Refinance: modeled payoff
- 30 years
- Refinance versus keep: modeled lifetime cash cost
- $78,930.97 less
Educational estimate only. It does not provide a rate quote, APR, loan offer, approval, payoff statement, servicing record, tax advice, legal advice, or individualized financial advice.
Break-even divides modeled up-front closing costs by a lower modeled principal-and-interest payment. It does not include future taxes, insurance, mortgage insurance, escrow, fees after closing, changing rates, points, cash-out, recasts, prepayment terms, opportunity cost or actual lender pricing.
We couldn’t update this estimate.
Restore the example and try again. If the problem continues, review the corrections process.
Report a calculation problemTerm-reset check
The modeled payoff timing is unchanged.
A lower monthly payment can come from a longer repayment period. Read the modeled payoff timing and lifetime cash-cost line together rather than using the payment alone.
How this comparison works
The engine makes two fixed-rate amortization schedules from the same entered current balance: one under the current assumptions and one under the new assumptions. Modeled lifetime cash cost includes scheduled principal and interest plus the entered closing costs for the refinance path.
It intentionally does not calculate APR because that depends on loan-specific disclosures and terms beyond this simplified comparison.
Review formulas and sourcesWorked example
$360,000 balance 7.25% versus 6.25% 30 years
- Modeled payment decrease
- $239.25 less
- Payment-only break-even
- 31 months
- Modeled closing costs
- $7,200.00
Illustration only—not a rate quote or refinance recommendation.
Review formulas and primary sources Read the corrections policy
Refinance comparison questions
Is this a refinance recommendation?
No. It compares the assumptions entered. Actual refinance costs, qualification, rate lock terms, taxes, insurance and loan terms can differ materially.
Why is the break-even called payment-only?
It only compares modeled closing costs to a lower modeled principal-and-interest payment. It does not establish overall financial benefit or account for a different payoff date.
Why can a lower payment still cost more over time?
A longer new term can reduce the monthly payment while extending repayment. Compare the term-reset check and modeled lifetime cash cost before treating a lower payment as savings.