Money Calculators
Use this refinance calculator to compare a current payment with a new estimated payment and see how long closing costs may take to break even.
Live calculator
Principal and interest estimate for the new loan.
Current payment compared with the new estimated payment.
Closing costs entered: $6,000.00.
The new payment is $1,750.72. After $6,000.00 in closing costs, the refinance needs 14 months to break even.
Payment, cost, and interest assumptions for the new loan.
| Measure | Estimate |
|---|---|
| Current payment | $2,200.00 |
| New payment | $1,750.72 |
| Monthly savings | $449.28 |
| Closing costs | $6,000.00 |
| New term | 360 months |
| New loan interest | $330,258.68 |
Net savings after closing costs at common holding periods.
| Point | Net savings |
|---|---|
| 12 months | -$608.62 |
| 24 months | $4,782.75 |
| 36 months | $10,174.13 |
| 60 months | $20,956.89 |
Use this as a planning estimate. Taxes, fees, rates, account terms, provider policies, local rules, and timing can change real-world results.
Quick answer
Refinance Calculator calculates refinance break-even from loan balance, current payment, new rate, new term years, and closing costs. The visible formula is Break-even months = closing costs / monthly savings.
Formula
Break-even months = closing costs / monthly savingsThe new payment is an amortized principal-and-interest estimate. A positive monthly savings is required for a break-even month.
How to use
Example
Calculator use
Before relying on it
Details
These notes make the assumptions explicit, especially where the same search query can mean slightly different things.
The break-even month only works when the new payment is lower. If monthly savings are zero or negative, closing costs are not recovered through payment savings.
A lower monthly payment can come from extending the term, which may increase the time in debt or lifetime interest paid.
Costs paid at closing and costs rolled into the new loan both matter because they affect cash needed, loan balance, or total borrowing cost.
Benchmarks
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions. Benchmark ranges are broad planning heuristics unless this page names a specific source for the range.
If the new payment is higher, closing costs may not be recovered through monthly savings.
Often easier to justify if you expect to keep the loan long enough.
A long break-even can be risky if you may sell, move, or refinance again soon.
Calculator accuracy
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Break-even months = closing costs / monthly savings
Loan balance, Current payment, New rate, New term years, Closing costs
Money results are planning estimates. Actual taxes, account terms, rates, fees, timing, local rules, and provider policies can change the real-world result.
June 6, 2026
Toolkit Shelf. Refinance Calculator. Last reviewed June 6, 2026. https://toolkitshelf.com/tools/refinance-calculator
FAQ
Divide closing costs by monthly savings. The result is the number of months needed to recover the closing costs.
No. It compares principal-and-interest payments only unless those costs are already included in the payment you enter.
Sometimes, such as when shortening the term or changing loan type, but this calculator focuses on monthly savings and break-even.
Compare the new term, total interest, closing costs, and how long you expect to keep the loan. A lower payment can still extend debt.
No. Use it for planning and comparison. Real decisions can change after exact rates, balances, fees, taxes, account terms, timing, and personal details are verified.
Small changes in rates, payment timing, taxes, fees, balances, or income can materially change the result, so the assumptions need to stay visible.