Refinance breakeven
Estimate how long it takes for refinance savings to cover upfront costs.
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Old payment minus new payment
Break-even refinance calculator
See how long monthly savings take to offset upfront refinance costs.
How this calculator works
Find how long it takes for refinance savings to cover penalties and fees.
Use it to decide whether refinancing makes sense today.
Inputs you will need
- Penalty and fees
- Monthly payment savings
- Remaining term
Assumptions and limitations
- Assumes savings remain constant.
- Does not include tax implications.
- Breakeven does not account for opportunity costs.
Example scenarios
$5,000 penalty
See how long $150 monthly savings takes to recoup.
Short term remaining
Check if refinancing pays off with 18 months left.
Related tools
Save and compare scenarios
Create a free account to save scenarios, compare options side by side, and share results with your broker team.
Frequently asked questions
What if savings are negative?
The calculator will show no breakeven; refinancing may not make sense.
Does it include cash back?
Add cashback to reduce total costs for a clearer breakeven.
Should I refinance near maturity?
Often no. Compare renewal options before paying penalties.