Reviewed August 9, 2026 · Use a current lender quote for rate and fee assumptions
Quick answer: A simple refinance break-even period is upfront refinance cost divided by monthly payment savings. Also compare the new term, total projected interest, cash-out, financed costs and how long you expect to keep the mortgage.
Use lender and third-party charges from a current Loan Estimate. Points, lender credits and financed fees change the comparison.
A new 30-year loan may lower the payment while extending repayment. Compare it with the remaining term of the current loan.
Enter a current quote for the loan type, credit profile, points and lock period you are evaluating. A market average is not an offer.
Next: review refinance closing costs, understand break-even analysis, review current rate context.
A mortgage refinance calculator compares your current loan with a proposed new loan. The most useful outputs are the monthly principal-and-interest change, estimated upfront costs, a simple break-even period and the effect of changing the remaining loan term.
A simple break-even estimate divides upfront refinance costs by monthly payment savings. It does not automatically account for extending the loan term, cash taken out, taxes, opportunity cost or differences in total interest. Compare the full remaining cost of both loans when those factors matter.
Mortgage rates change over time and vary by borrower, property, loan type, points and lender. Enter the rate and closing costs from a current quote rather than relying on a generic market average.
Use the Mortgage Calculator for a payment estimate, the Mortgage Amortization Calculator to compare payoff schedules, and the Mortgage Points Calculator for discount-point break-even scenarios.
Reviewed: August 7, 2026. Estimates are educational and are not a lender quote or financial advice.
A simple break-even period divides upfront refinance costs by the monthly payment savings. For example, $4,000 of costs divided by $200 of monthly savings equals 20 months. This simple measure does not capture every economic effect of refinancing.
See your break-even point and total lifetime savings from refinancing your mortgage.
Rate reduction: 1.250%
Typically $3,000-$6,000 (1-3% of loan amount)