🏠 no lender's incentive baked in — just the math
Mortgage Refinance Break-Even Calculator
See exactly how many months it takes for a refinance's monthly savings to cover the closing costs - the math a bank's own "refi calculator" has an incentive to gloss over. Nothing leaves your browser.
How it works
Monthly payments for both the current and new loan use the standard amortization formula — principal times monthly rate times (1+rate)^n, divided by ((1+rate)^n − 1) — and the break-even point is simply the closing costs divided by the monthly savings between the two payments: how many months of savings it takes to pay for the refinance itself.
FAQ
- What does it mean when break-even shows "Never"?
- It means the new monthly payment isn't actually lower than the current one, so no number of months of "savings" will ever cover the closing costs — refinancing at those terms wouldn't pay for itself.
- Does the break-even number account for restarting a full 30-year loan term?
- No — it only compares monthly payment amounts, not the extra years of interest from resetting the clock on a new term instead of continuing your original loan's remaining years; that trade-off shows up separately in the total interest figures.
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