Refinance Break-Even Calculator
Type the current payment, the new payment, and cash closing costs. Months to recoup costs equal costs divided by the monthly savings. Informational, not lending advice and not a quote.
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How to find refinance break-even months
- Enter the current monthly payment and the new monthly payment. Both must be greater than 0.
- Enter cash closing costs you would pay to refinance. Costs cannot be negative.
- Read monthly savings and months to recoup costs. The page also ceils that figure to a whole month.
- If the new payment is not lower, the page says costs are not recouped from payment savings. This is not a lender quote.
Refinance break-even months
Closing costs divided by monthly payment savings
| Savings | Old payment minus new payment |
|---|---|
| Months | Closing costs / monthly savings |
| Default example | 4000 / (2000 - 1800) = 20 months |
| Rounded break-even | ceil(months) when savings are positive |
| Ignored | Remaining principal, tax, points as prepaid interest, term change |
| Advice | Informational, not lending advice. |
What refinance break-even means here
This page answers one question: how many months of a lower payment it takes to earn back cash closing costs. It does not re-amortize a new note. For a full fixed-rate payment from principal, rate, and term, use the mortgage calculator first, then paste those payments here.
How months are computed
Monthly savings = current payment minus new payment. If savings are greater than 0, months = closing costs / savings. The page also reports a whole-month ceil. If the new payment is not lower, savings are zero or negative and the page states that payment savings do not recoup costs. Costs of 0 with positive savings yield 0 months.
Payments, costs, and what a refinance still changes
Closing costs can include origination, title, and prepaid items. This form treats the cost field as cash out of pocket. It ignores remaining principal, a shorter or longer term, mortgage interest deduction, and points that a lender treats as prepaid interest. Rolling costs into the new balance is a different cash path you must model yourself. Informational, not lending advice.
Use cases
A back-of-envelope check after you already have two payment figures. A homework example with 2000, 1800, and 4000 that recoups in 20 months. Not a decision engine for cash-out, ARM conversion, or a HELOC.
Limits
No live rates. No credit score. No escrow. No remaining-term comparison. Payments must be greater than 0. CZNull does not receive the numbers.