Refinance Break-Even Calculator
How long until your refinance pays for itself? Enter your closing costs and monthly savings to find your break-even point.
Your Refinance Numbers
Total cost to refinance (typically 2-5% of loan)
Difference between old and new monthly payment
Optional: how long you plan to keep the home
This calculator provides estimates for educational purposes only. Actual rates, payments, and savings will vary based on your credit score, loan-to-value ratio, property type, and lender. Consult a licensed mortgage professional for personalized advice. Wirly is not a lender or mortgage broker.
Break-Even FAQ
What is the break-even point on a refinance?
The break-even point is when your accumulated monthly savings equal your closing costs. After that point, you're saving money every month. Before it, you're still recouping the upfront cost of refinancing.
How do I calculate my refinance break-even?
Divide your total closing costs by your monthly savings. For example, $6,000 in closing costs with $200/month savings means a 30-month break-even. If you plan to stay longer than 30 months, the refinance pays for itself.
What is a good break-even period for refinancing?
Most financial advisors consider a break-even period under 3 years (36 months) to be favorable. Under 2 years is excellent. If the break-even is over 5 years, carefully consider whether you'll stay in the home that long.
Should I include all closing costs in the break-even calculation?
Yes, include all out-of-pocket costs: origination fees, appraisal, title insurance, and any points paid. If you're rolling closing costs into the loan, your monthly payment and savings will be different.