Find monthly savings and how many months of those savings it takes to recoup refinance closing costs.
| Save / month | – |
| Months to breakeven | – |
Use this refinance-breakeven calculator as a cash sketch, not a 30-year verdict. It ignores remaining term, tax deductibility of interest, and the time value of money. The new payment must be lower than the old one.
Monthly save = old payment − new payment. Months to breakeven = closing costs ÷ monthly save. Type currency amounts in the same unit.
Old payment: Current monthly principal-and-interest (or the payment you actually send).
New payment: Proposed monthly payment after the refinance.
Closing costs: Fees you pay to close the new loan, in the same currency.
Save / month: How much less you pay each month.
Months to breakeven: Costs divided by that monthly save.
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