Refinance Break-Even Calculator
Months until a refinance's closing costs pay for themselves in lower monthly payments.
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About the Refinance Break-Even Calculator
Calculates how many months it takes for a mortgage refinance's closing costs to pay for themselves in lower monthly payments.
- Enter your refinance closing costs.
- Enter your monthly payment savings.
- Enter the years you plan to keep this loan.
- Read your break-even point and net savings over your planned timeline.
$5,000 in closing costs against $180/month in payment savings breaks even in 28 months (about 2.3 years) — planning to keep the loan 7 years means roughly $10,120 in net savings.
This is the simplest, most commonly cited refinance break-even method. It doesn't discount future savings to present value, account for a change in loan term length, or model taxes.
- • If you don't expect to keep the loan past the break-even point, the closing costs likely aren't worth it.
- • Ask your lender about a 'no-closing-cost' refinance, which usually rolls the costs into a slightly higher rate.
- • This tool takes your monthly savings figure as a given — the Mortgage Refinance Calculator computes it if you don't have one yet.
- Chase — Calculating the break-even point when refinancing — accessed 2026-08-31
Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.