Mortgage Refinance Break-even Calculator
Determine the number of months required for monthly savings to offset refinancing closing costs.
This is an estimate. Consult a financial professional for a full break-even analysis.
Examples
- Current $1500, new $1300, costs $3000 ⇒ 15.00 months
- Current $2000, new $1800, costs $4000 ⇒ 20.00 months
FAQ
What if monthly savings are zero?
If payments are equal, break-even time is infinite.
Does this include tax implications?
No, tax effects should be considered separately.
Can I enter negative savings?
The formula requires the new payment to be lower than the current payment.
Additional Information
- Assumes savings remain constant over time.
- Breaking even faster generally indicates a better refinance.