Mortgage / THE DECISION DESK
Mortgage Refinance Breakeven Calculator
Find out how many months it takes to recover your closing costs, and whether a lower rate actually saves you money once the term resets.
Reviewed Calculation inputs stay in your browser
Compare up to three snapshots of inputs and headline results. Snapshots clear when you leave this page.
1 yr 6 mo
Stay in the home past this point and the refinance is ahead. Sell or refinance again before it, and you lose money.
Monthly payment
Interest over the full term
Cumulative cost of each option
The refinance line starts $6,400 higher because of closing costs, then climbs more slowly. Where the lines cross is the point the refinance has paid for itself.
View as table
| Months from closing | Keep current loan | Refinance |
|---|---|---|
| 0 mo | $0 | $6,400 |
| 1 mo | $2,282 | $8,319 |
| 2 mo | $4,563 | $10,237 |
| 3 mo | $6,845 | $12,156 |
| 4 mo | $9,127 | $14,074 |
| 5 mo | $11,409 | $15,993 |
| 6 mo | $13,690 | $17,911 |
| 7 mo | $15,972 | $19,830 |
| 8 mo | $18,254 | $21,748 |
| 9 mo | $20,536 | $23,667 |
| 10 mo | $22,817 | $25,586 |
| 11 mo | $25,099 | $27,504 |
| 1 yr | $27,381 | $29,423 |
| 1 yr 1 mo | $29,663 | $31,341 |
| 1 yr 2 mo | $31,944 | $33,260 |
| 1 yr 3 mo | $34,226 | $35,178 |
| 1 yr 4 mo | $36,508 | $37,097 |
| 1 yr 5 mo | $38,790 | $39,016 |
| 1 yr 6 mo | $41,071 | $40,934 |
| 1 yr 7 mo | $43,353 | $42,853 |
| 1 yr 8 mo | $45,635 | $44,771 |
| 1 yr 9 mo | $47,916 | $46,690 |
| 1 yr 10 mo | $50,198 | $48,608 |
| 1 yr 11 mo | $52,480 | $50,527 |
| 2 yr | $54,762 | $52,445 |
| 2 yr 1 mo | $57,043 | $54,364 |
| 2 yr 2 mo | $59,325 | $56,283 |
| 2 yr 3 mo | $61,607 | $58,201 |
| 2 yr 4 mo | $63,889 | $60,120 |
| 2 yr 5 mo | $66,170 | $62,038 |
| 2 yr 6 mo | $68,452 | $63,957 |
| 2 yr 7 mo | $70,734 | $65,875 |
| 2 yr 8 mo | $73,016 | $67,794 |
| 2 yr 9 mo | $75,297 | $69,713 |
| 2 yr 10 mo | $77,579 | $71,631 |
| 2 yr 11 mo | $79,861 | $73,550 |
| 3 yr | $82,143 | $75,468 |
| 3 yr 1 mo | $84,424 | $77,387 |
| 3 yr 2 mo | $86,706 | $79,305 |
| 3 yr 3 mo | $88,988 | $81,224 |
| 3 yr 4 mo | $91,270 | $83,142 |
| 3 yr 5 mo | $93,551 | $85,061 |
| 3 yr 6 mo | $95,833 | $86,980 |
| 3 yr 7 mo | $98,115 | $88,898 |
| 3 yr 8 mo | $100,396 | $90,817 |
| 3 yr 9 mo | $102,678 | $92,735 |
| 3 yr 10 mo | $104,960 | $94,654 |
| 3 yr 11 mo | $107,242 | $96,572 |
| 4 yr | $109,523 | $98,491 |
| 4 yr 1 mo | $111,805 | $100,410 |
| 4 yr 2 mo | $114,087 | $102,328 |
| 4 yr 3 mo | $116,369 | $104,247 |
| 4 yr 4 mo | $118,650 | $106,165 |
| 4 yr 5 mo | $120,932 | $108,084 |
| 4 yr 6 mo | $123,214 | $110,002 |
| 4 yr 7 mo | $125,496 | $111,921 |
| 4 yr 8 mo | $127,777 | $113,839 |
| 4 yr 9 mo | $130,059 | $115,758 |
| 4 yr 10 mo | $132,341 | $117,677 |
| 4 yr 11 mo | $134,623 | $119,595 |
| 5 yr | $136,904 | $121,514 |
| 5 yr 1 mo | $139,186 | $123,432 |
| 5 yr 2 mo | $141,468 | $125,351 |
| 5 yr 3 mo | $143,749 | $127,269 |
| 5 yr 4 mo | $146,031 | $129,188 |
| 5 yr 5 mo | $148,313 | $131,107 |
| 5 yr 6 mo | $150,595 | $133,025 |
| 5 yr 7 mo | $152,876 | $134,944 |
| 5 yr 8 mo | $155,158 | $136,862 |
| 5 yr 9 mo | $157,440 | $138,781 |
| 5 yr 10 mo | $159,722 | $140,699 |
| 5 yr 11 mo | $162,003 | $142,618 |
| 6 yr | $164,285 | $144,536 |
| 6 yr 1 mo | $166,567 | $146,455 |
| 6 yr 2 mo | $168,849 | $148,374 |
| 6 yr 3 mo | $171,130 | $150,292 |
| 6 yr 4 mo | $173,412 | $152,211 |
| 6 yr 5 mo | $175,694 | $154,129 |
| 6 yr 6 mo | $177,976 | $156,048 |
| 6 yr 7 mo | $180,257 | $157,966 |
| 6 yr 8 mo | $182,539 | $159,885 |
| 6 yr 9 mo | $184,821 | $161,803 |
| 6 yr 10 mo | $187,102 | $163,722 |
| 6 yr 11 mo | $189,384 | $165,641 |
| 7 yr | $191,666 | $167,559 |
| 7 yr 1 mo | $193,948 | $169,478 |
| 7 yr 2 mo | $196,229 | $171,396 |
| 7 yr 3 mo | $198,511 | $173,315 |
| 7 yr 4 mo | $200,793 | $175,233 |
| 7 yr 5 mo | $203,075 | $177,152 |
| 7 yr 6 mo | $205,356 | $179,071 |
| 7 yr 7 mo | $207,638 | $180,989 |
| 7 yr 8 mo | $209,920 | $182,908 |
| 7 yr 9 mo | $212,202 | $184,826 |
| 7 yr 10 mo | $214,483 | $186,745 |
| 7 yr 11 mo | $216,765 | $188,663 |
| 8 yr | $219,047 | $190,582 |
| 8 yr 1 mo | $221,329 | $192,500 |
| 8 yr 2 mo | $223,610 | $194,419 |
| 8 yr 3 mo | $225,892 | $196,338 |
| 8 yr 4 mo | $228,174 | $198,256 |
| 8 yr 5 mo | $230,456 | $200,175 |
| 8 yr 6 mo | $232,737 | $202,093 |
| 8 yr 7 mo | $235,019 | $204,012 |
| 8 yr 8 mo | $237,301 | $205,930 |
| 8 yr 9 mo | $239,582 | $207,849 |
| 8 yr 10 mo | $241,864 | $209,768 |
| 8 yr 11 mo | $244,146 | $211,686 |
| 9 yr | $246,428 | $213,605 |
| 9 yr 1 mo | $248,709 | $215,523 |
| 9 yr 2 mo | $250,991 | $217,442 |
| 9 yr 3 mo | $253,273 | $219,360 |
| 9 yr 4 mo | $255,555 | $221,279 |
| 9 yr 5 mo | $257,836 | $223,197 |
| 9 yr 6 mo | $260,118 | $225,116 |
| 9 yr 7 mo | $262,400 | $227,035 |
| 9 yr 8 mo | $264,682 | $228,953 |
| 9 yr 9 mo | $266,963 | $230,872 |
| 9 yr 10 mo | $269,245 | $232,790 |
| 9 yr 11 mo | $271,527 | $234,709 |
| 10 yr | $273,809 | $236,627 |
| 10 yr 1 mo | $276,090 | $238,546 |
| 10 yr 2 mo | $278,372 | $240,465 |
| 10 yr 3 mo | $280,654 | $242,383 |
| 10 yr 4 mo | $282,935 | $244,302 |
| 10 yr 5 mo | $285,217 | $246,220 |
| 10 yr 6 mo | $287,499 | $248,139 |
| 10 yr 7 mo | $289,781 | $250,057 |
| 10 yr 8 mo | $292,062 | $251,976 |
| 10 yr 9 mo | $294,344 | $253,894 |
| 10 yr 10 mo | $296,626 | $255,813 |
| 10 yr 11 mo | $298,908 | $257,732 |
| 11 yr | $301,189 | $259,650 |
| 11 yr 1 mo | $303,471 | $261,569 |
| 11 yr 2 mo | $305,753 | $263,487 |
| 11 yr 3 mo | $308,035 | $265,406 |
| 11 yr 4 mo | $310,316 | $267,324 |
| 11 yr 5 mo | $312,598 | $269,243 |
| 11 yr 6 mo | $314,880 | $271,162 |
| 11 yr 7 mo | $317,162 | $273,080 |
| 11 yr 8 mo | $319,443 | $274,999 |
| 11 yr 9 mo | $321,725 | $276,917 |
| 11 yr 10 mo | $324,007 | $278,836 |
| 11 yr 11 mo | $326,289 | $280,754 |
| 12 yr | $328,570 | $282,673 |
| 12 yr 1 mo | $330,852 | $284,591 |
| 12 yr 2 mo | $333,134 | $286,510 |
| 12 yr 3 mo | $335,415 | $288,429 |
| 12 yr 4 mo | $337,697 | $290,347 |
| 12 yr 5 mo | $339,979 | $292,266 |
| 12 yr 6 mo | $342,261 | $294,184 |
| 12 yr 7 mo | $344,542 | $296,103 |
| 12 yr 8 mo | $346,824 | $298,021 |
| 12 yr 9 mo | $349,106 | $299,940 |
| 12 yr 10 mo | $351,388 | $301,858 |
| 12 yr 11 mo | $353,669 | $303,777 |
| 13 yr | $355,951 | $305,696 |
| 13 yr 1 mo | $358,233 | $307,614 |
| 13 yr 2 mo | $360,515 | $309,533 |
| 13 yr 3 mo | $362,796 | $311,451 |
| 13 yr 4 mo | $365,078 | $313,370 |
| 13 yr 5 mo | $367,360 | $315,288 |
| 13 yr 6 mo | $369,642 | $317,207 |
| 13 yr 7 mo | $371,923 | $319,126 |
| 13 yr 8 mo | $374,205 | $321,044 |
| 13 yr 9 mo | $376,487 | $322,963 |
| 13 yr 10 mo | $378,768 | $324,881 |
| 13 yr 11 mo | $381,050 | $326,800 |
| 14 yr | $383,332 | $328,718 |
| 14 yr 1 mo | $385,614 | $330,637 |
| 14 yr 2 mo | $387,895 | $332,555 |
| 14 yr 3 mo | $390,177 | $334,474 |
| 14 yr 4 mo | $392,459 | $336,393 |
| 14 yr 5 mo | $394,741 | $338,311 |
| 14 yr 6 mo | $397,022 | $340,230 |
| 14 yr 7 mo | $399,304 | $342,148 |
| 14 yr 8 mo | $401,586 | $344,067 |
| 14 yr 9 mo | $403,868 | $345,985 |
| 14 yr 10 mo | $406,149 | $347,904 |
| 14 yr 11 mo | $408,431 | $349,823 |
| 15 yr | $410,713 | $351,741 |
| 15 yr 1 mo | $412,995 | $353,660 |
| 15 yr 2 mo | $415,276 | $355,578 |
| 15 yr 3 mo | $417,558 | $357,497 |
| 15 yr 4 mo | $419,840 | $359,415 |
| 15 yr 5 mo | $422,121 | $361,334 |
| 15 yr 6 mo | $424,403 | $363,252 |
| 15 yr 7 mo | $426,685 | $365,171 |
| 15 yr 8 mo | $428,967 | $367,090 |
| 15 yr 9 mo | $431,248 | $369,008 |
| 15 yr 10 mo | $433,530 | $370,927 |
| 15 yr 11 mo | $435,812 | $372,845 |
| 16 yr | $438,094 | $374,764 |
| 16 yr 1 mo | $440,375 | $376,682 |
| 16 yr 2 mo | $442,657 | $378,601 |
| 16 yr 3 mo | $444,939 | $380,520 |
| 16 yr 4 mo | $447,221 | $382,438 |
| 16 yr 5 mo | $449,502 | $384,357 |
| 16 yr 6 mo | $451,784 | $386,275 |
| 16 yr 7 mo | $454,066 | $388,194 |
| 16 yr 8 mo | $456,348 | $390,112 |
| 16 yr 9 mo | $458,629 | $392,031 |
| 16 yr 10 mo | $460,911 | $393,949 |
| 16 yr 11 mo | $463,193 | $395,868 |
| 17 yr | $465,475 | $397,787 |
| 17 yr 1 mo | $467,756 | $399,705 |
| 17 yr 2 mo | $470,038 | $401,624 |
| 17 yr 3 mo | $472,320 | $403,542 |
| 17 yr 4 mo | $474,601 | $405,461 |
| 17 yr 5 mo | $476,883 | $407,379 |
| 17 yr 6 mo | $479,165 | $409,298 |
| 17 yr 7 mo | $481,447 | $411,217 |
| 17 yr 8 mo | $483,728 | $413,135 |
| 17 yr 9 mo | $486,010 | $415,054 |
| 17 yr 10 mo | $488,292 | $416,972 |
| 17 yr 11 mo | $490,574 | $418,891 |
| 18 yr | $492,855 | $420,809 |
| 18 yr 1 mo | $495,137 | $422,728 |
| 18 yr 2 mo | $497,419 | $424,646 |
| 18 yr 3 mo | $499,701 | $426,565 |
| 18 yr 4 mo | $501,982 | $428,484 |
| 18 yr 5 mo | $504,264 | $430,402 |
| 18 yr 6 mo | $506,546 | $432,321 |
| 18 yr 7 mo | $508,828 | $434,239 |
| 18 yr 8 mo | $511,109 | $436,158 |
| 18 yr 9 mo | $513,391 | $438,076 |
| 18 yr 10 mo | $515,673 | $439,995 |
| 18 yr 11 mo | $517,954 | $441,914 |
| 19 yr | $520,236 | $443,832 |
| 19 yr 1 mo | $522,518 | $445,751 |
| 19 yr 2 mo | $524,800 | $447,669 |
| 19 yr 3 mo | $527,081 | $449,588 |
| 19 yr 4 mo | $529,363 | $451,506 |
| 19 yr 5 mo | $531,645 | $453,425 |
| 19 yr 6 mo | $533,927 | $455,343 |
| 19 yr 7 mo | $536,208 | $457,262 |
| 19 yr 8 mo | $538,490 | $459,181 |
| 19 yr 9 mo | $540,772 | $461,099 |
| 19 yr 10 mo | $543,054 | $463,018 |
| 19 yr 11 mo | $545,335 | $464,936 |
| 20 yr | $547,617 | $466,855 |
| 20 yr 1 mo | $549,899 | $468,773 |
| 20 yr 2 mo | $552,181 | $470,692 |
| 20 yr 3 mo | $554,462 | $472,610 |
| 20 yr 4 mo | $556,744 | $474,529 |
| 20 yr 5 mo | $559,026 | $476,448 |
| 20 yr 6 mo | $561,307 | $478,366 |
| 20 yr 7 mo | $563,589 | $480,285 |
| 20 yr 8 mo | $565,871 | $482,203 |
| 20 yr 9 mo | $568,153 | $484,122 |
| 20 yr 10 mo | $570,434 | $486,040 |
| 20 yr 11 mo | $572,716 | $487,959 |
| 21 yr | $574,998 | $489,878 |
| 21 yr 1 mo | $577,280 | $491,796 |
| 21 yr 2 mo | $579,561 | $493,715 |
| 21 yr 3 mo | $581,843 | $495,633 |
| 21 yr 4 mo | $584,125 | $497,552 |
| 21 yr 5 mo | $586,407 | $499,470 |
| 21 yr 6 mo | $588,688 | $501,389 |
| 21 yr 7 mo | $590,970 | $503,307 |
| 21 yr 8 mo | $593,252 | $505,226 |
| 21 yr 9 mo | $595,534 | $507,145 |
| 21 yr 10 mo | $597,815 | $509,063 |
| 21 yr 11 mo | $600,097 | $510,982 |
| 22 yr | $602,379 | $512,900 |
| 22 yr 1 mo | $604,661 | $514,819 |
| 22 yr 2 mo | $606,942 | $516,737 |
| 22 yr 3 mo | $609,224 | $518,656 |
| 22 yr 4 mo | $611,506 | $520,575 |
| 22 yr 5 mo | $613,787 | $522,493 |
| 22 yr 6 mo | $616,069 | $524,412 |
| 22 yr 7 mo | $618,351 | $526,330 |
| 22 yr 8 mo | $620,633 | $528,249 |
| 22 yr 9 mo | $622,914 | $530,167 |
| 22 yr 10 mo | $625,196 | $532,086 |
| 22 yr 11 mo | $627,478 | $534,004 |
| 23 yr | $629,760 | $535,923 |
| 23 yr 1 mo | $632,041 | $537,842 |
| 23 yr 2 mo | $634,323 | $539,760 |
| 23 yr 3 mo | $636,605 | $541,679 |
| 23 yr 4 mo | $638,887 | $543,597 |
| 23 yr 5 mo | $641,168 | $545,516 |
| 23 yr 6 mo | $643,450 | $547,434 |
| 23 yr 7 mo | $645,732 | $549,353 |
| 23 yr 8 mo | $648,014 | $551,272 |
| 23 yr 9 mo | $650,295 | $553,190 |
| 23 yr 10 mo | $652,577 | $555,109 |
| 23 yr 11 mo | $654,859 | $557,027 |
| 24 yr | $657,140 | $558,946 |
| 24 yr 1 mo | $659,422 | $560,864 |
| 24 yr 2 mo | $661,704 | $562,783 |
| 24 yr 3 mo | $663,986 | $564,701 |
| 24 yr 4 mo | $666,267 | $566,620 |
| 24 yr 5 mo | $668,549 | $568,539 |
| 24 yr 6 mo | $670,831 | $570,457 |
| 24 yr 7 mo | $673,113 | $572,376 |
| 24 yr 8 mo | $675,394 | $574,294 |
| 24 yr 9 mo | $677,676 | $576,213 |
| 24 yr 10 mo | $679,958 | $578,131 |
| 24 yr 11 mo | $682,240 | $580,050 |
| 25 yr | $684,521 | $581,969 |
| 25 yr 1 mo | $686,803 | $583,887 |
| 25 yr 2 mo | $689,085 | $585,806 |
| 25 yr 3 mo | $691,367 | $587,724 |
| 25 yr 4 mo | $693,648 | $589,643 |
| 25 yr 5 mo | $695,930 | $591,561 |
| 25 yr 6 mo | $698,212 | $593,480 |
| 25 yr 7 mo | $700,494 | $595,398 |
| 25 yr 8 mo | $702,775 | $597,317 |
| 25 yr 9 mo | $705,057 | $599,236 |
| 25 yr 10 mo | $707,339 | $601,154 |
| 25 yr 11 mo | $709,620 | $603,073 |
| 26 yr | $711,902 | $604,991 |
How this is calculated
Both payments come from the standard amortization formula, where P is the balance, r is the monthly rate (annual rate divided by 12), and n is the number of payments:
payment = P × r / (1 − (1 + r)−n)
Breakeven is closing costs divided by the monthly saving. If the new payment is higher, there is no monthly saving to divide into, and the refinance never breaks even on cash flow alone.
Remaining interest on your current loan is the current payment multiplied by the payments you have left, minus the balance. This is interest you have not yet paid — money already spent on the loan is sunk and correctly excluded from the comparison.
Total interest on the new loan is calculated the same way over the new term. The net figure subtracts closing costs, so a positive number means refinancing leaves you ahead across the full life of both loans.
The model assumes you make exactly the scheduled payment every month, that the rate is fixed, and that you hold the loan to term. Extra principal payments, ARMs, and selling partway through all change the answer.
Common questions
›What is a good breakeven period on a refinance?
It depends entirely on how long you plan to keep the house. The breakeven number is only meaningful next to your own timeline: a 30-month breakeven is excellent if you are staying a decade and worthless if you are moving next year. A common rule of thumb is to want breakeven inside 24 to 36 months, but that rule is really just a proxy for 'most people move or refinance again within about five years.'
›Why does the calculator show interest savings and monthly savings separately?
Because they frequently disagree. Refinancing a loan with 22 years left into a fresh 30-year term almost always lowers the monthly payment, since the balance is spread over 96 more payments. That same stretch can raise total interest by tens of thousands of dollars. A calculator that reports only the monthly saving will tell you to refinance in cases where you would lose money.
›Should I include points in closing costs?
Yes. Discount points are prepaid interest and belong in the closing cost figure, because the whole purpose of the breakeven calculation is to work out how long the lower rate takes to repay whatever you paid up front to get it. If you are comparing two quotes where one includes points and one does not, run the calculator twice and compare the breakeven periods.
›What about a no-closing-cost refinance?
Closing costs in those loans are not waived, they are moved. The lender either adds them to the balance or charges a higher rate. To model the rate version, enter zero closing costs and the higher rate you were quoted. To model the rolled-in-balance version, add the costs to the remaining balance and keep the quoted rate. Both usually produce a worse lifetime number than paying costs in cash, and better cash flow today.
›Does this account for taxes or PMI?
No. This compares principal and interest only. Mortgage interest deductibility, private mortgage insurance that may drop off at a different point on each loan, and escrow changes all affect the real answer and none of them are modeled here. Treat the output as a first screen, not a final decision.