Nitro ToolzRefinance Break-Even Calculator
How many months until a refinance pays for its closing costs.
Refinance Break-Even Calculator
Generated 10/9/2026
- Current loan balance: 320000
- Current interest rate: 7.25
- Years remaining: 28
- New interest rate: 6.25
- New loan term: 30
- Closing costs: 6500
- Break-even point
- 2 yr 2 mo
- Monthly payment savings
- $257.41
- Current payment (P and I)
- $2,227.70
- New payment (P and I)
- $1,970.30
- Interest on current loan
- $428,508
- Interest on new loan
- $389,306
- Lifetime savings after costs
- $32,702
Closing costs divided by monthly savings
A longer new term lowers the payment but can raise total interest. Compare lifetime cost below.
How to use this tool
- Enter your current balance, rate and remaining years.
- Enter the new rate, new term and total closing costs.
- Compare the break-even month with how long you plan to keep the loan.
Formulas
Monthly savings = current payment - new payment.
Break-even months = closing costs / monthly savings. Lifetime savings = old interest - new interest - closing costs.
Frequently asked questions
What is a refinance break-even point?
It is the month when cumulative payment savings equal what you paid in closing costs. After that, you are ahead.
Is a lower payment always a win?
No. Restarting a 30-year term can lower the payment and still increase total interest. The lifetime savings figure shows the trade.
What closing costs should I enter?
Include lender fees, appraisal, title and any points. If you roll costs into the loan, add them to the balance instead.
What if I might move soon?
If you expect to move before the break-even month, the refinance likely will not pay for itself.