Refinance Break-Even Calculator
A lower rate only helps if you stay long enough to earn back the closing costs. This shows exactly where that line is.
Your numbers
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Monthly savings
$341.51
break-even in 1 yr 6 mo
- Current payment
- $2,180.23
- New payment
- $1,838.72
- Break-even point
- 1 yr 6 mo
- Lifetime interest differenceafter closing costs, if you keep the loan to term
- Save $12,292
If you move or refinance again before 1 yr 6 mo have passed, this refinance loses money.
How to use this calculator
The two questions that matter
First, how long until the monthly savings repay the closing costs. Second, whether resetting the clock on a longer term quietly adds interest even though the payment drops.
Refinancing into a shorter term
If your goal is to pay less interest overall rather than free up cash flow, try setting the new term to the years you have left. The payment may stay similar while the lifetime interest falls sharply.
Common questions
What is a good break-even period?
Many people use two to three years as a rule of thumb. If you're confident you'll stay in the home well past the break-even point, the refinance is more likely to pay off.
Can I roll closing costs into the loan?
Often yes, but that increases the balance you're paying interest on. To model it, add the closing costs to the current balance field and set closing costs to zero.
This calculator is an educational estimate based only on the figures you enter. Verdi does not provide financial, investment, tax, legal, credit or lending advice. Actual rates, fees, taxes and terms offered to you may differ.