Refinance Break-Even Calculator
Break-even is the month when cumulative monthly savings finally exceed the closing costs you paid to refinance. This worked example uses a $280,000 balance at 6.75% with 24 years left, compared to a new loan at 6.0% over 30 years and $5,000 in upfront closing costs.
The summary below shows current payment, new payment, monthly difference, and the month savings overtake costs. The same remaining term line runs the new rate against your leftover years — the apples-to-apples payment before you restart the clock. Controls below let you enter your own balance, rates, terms, and closing-cost toggle (paid up front vs rolled into the balance).
A lower monthly payment on a fresh 30-year term can still cost more total interest because the clock restarts. This tool shows that lifetime comparison alongside break-even. Not financial advice.
Your loan numbers stay in your browser. We never see them, and nothing is saved.
Current monthly payment: $1,965.80
New monthly payment (30 yr): $1,678.74
Monthly difference: $287.06
Same remaining term at new rate: $1,836.74 per month
Break-even: Month 18
Remaining interest on current loan: $286,149.55
Total interest on new loan: $324,347.81
Lifetime interest difference: $-38,198.26
Closing costs ($5,000.00) paid up front; new loan balance $280,000.00.
This is an estimate for planning, not financial advice.
Cumulative savings through break-even
| Month | Monthly savings | Cumulative savings |
|---|---|---|
| 1 | $287.06 | $287.06 |
| 2 | $287.06 | $574.12 |
| 3 | $287.06 | $861.18 |
| 4 | $287.06 | $1,148.24 |
| 5 | $287.06 | $1,435.30 |
| 6 | $287.06 | $1,722.36 |
| 7 | $287.06 | $2,009.42 |
| 8 | $287.06 | $2,296.48 |
| 9 | $287.06 | $2,583.54 |
| 10 | $287.06 | $2,870.60 |
| 11 | $287.06 | $3,157.66 |
| 12 | $287.06 | $3,444.72 |
Showing first 12 of 18 months. Download PDF or CSV for the full table.
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