Refinance Break-Even Calculator

Should You Refinance?

The break-even point tells you how many months of savings cover your closing costs. A general rule: if the break-even is under 24 months and you plan to stay in the home longer than that, refinancing makes sense. Closing costs typically run 2–5% of the loan amount.

When Refinancing Doesn't Make Sense

Resetting a 30-year clock can cost more in total interest over time, even with a lower rate. If you're 10+ years into your loan, consider refinancing to a 15-year term instead to preserve payoff momentum.

What rate drop justifies refinancing?

A common rule of thumb is a rate reduction of at least 0.75%–1%, but the real measure is your break-even timeline vs. how long you plan to stay. Even a 0.5% drop can make sense with low closing costs.