Refinance Break-Even Calculator
Estimate a new principal-and-interest payment and the simple payment-based recovery time for upfront refinance costs.
Refinance break-even
Compare principal and interest payments before and after an illustrative refinance.
7 months
Simple payment-based recovery of upfront costs
Illustration only, rounded to the nearest dollar. This is not a rate quote, preapproval, credit decision, or commitment to lend. Actual rates, fees, terms, taxes, insurance, and qualification vary. This assumes no cash-out, the same unpaid balance, and closing costs paid upfront. Payment-based recovery is not a total-cost break-even; a longer loan term can reduce the monthly payment while increasing lifetime interest.
Understand the estimate.
This tool divides upfront closing costs by the difference between current and new monthly principal-and-interest payments. It assumes the same unpaid balance, no cash-out, and costs paid upfront. It measures payment-based recovery, not total interest or overall loan cost.
- Enter the current mortgage balance and current principal-and-interest payment.
- Add the proposed rate, new term, and upfront closing costs that will not be financed.
- See the monthly P&I difference and how many months of lower payments could offset upfront costs.
- Review total interest, loan term, cash needs, and your expected time in the home before deciding.
Answers before you decide.
Why compare principal and interest only?
Taxes, insurance, and HOA costs usually do not disappear with a refinance. Comparing principal and interest gives a more useful like-for-like starting point.
What if there is no break-even date?
If the new principal-and-interest payment is not lower, there are no lower monthly payments to recoup upfront costs. A shorter term may still reduce lifetime interest.
Does this show whether refinancing saves money overall?
No. A longer new term can lower monthly payments while increasing lifetime interest. This simple recovery measure also does not apply to cash-out refinances or closing costs added to the new loan. Compare full loan costs and expected time in the home with your lender.
Explore what the numbers could support.
Mortgage Refinance
Explore a new rate, term, or cash-out strategy with a clear break-even analysis.
Explore programRate-and-Term Refinance
Review a new rate or loan term against closing costs and lifetime interest.
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Replace your mortgage and access eligible equity with a new first loan.
Explore programTurn the estimate into a real financing plan.
Share your scenario with Neev to review current programs, actual costs, and the next step that fits your goals.