Calculator
Calculate Your Refinance Break-Even
Compare your existing mortgage with a potential new loan and estimate how long it may take for monthly principal-and-interest savings to recover the refinance costs.
Current loan
Current monthly principal & interest
$4,177
Calculated from your balance, rate and remaining term — you don't need to know the payment. Escrowed taxes and insurance are not included.
Proposed loan
Illustrative rate — not a quote or available rate.
Estimated costs are treated as an upfront cash cost and are not added to the proposed loan balance.
Your estimate
Current estimated P&I
$4,177
New estimated P&I
$3,792
Estimated monthly P&I difference
$385
Estimated monthly reduction.
Estimated refinance cost
$8,000
Simple break-even period
21 months
Estimated refinance cost divided by estimated monthly principal-and-interest savings.
Term consideration
Extending the repayment period may reduce the monthly payment while increasing the amount of time the mortgage remains outstanding. Monthly savings alone do not measure total borrowing cost.
5-year scheduled payment comparison
- Current loan — 60 months of P&I
- $250,616
- Proposed loan — 60 months of P&I plus upfront costs
- $235,544
- Difference over 60 months
- $15,072
This is a comparison of scheduled principal-and-interest payments only. It is not a measure of total economic savings and does not reflect differences in loan term, remaining balance, taxes, insurance or the time value of money.
Next step
Want to see what these numbers look like with actual financing options?
Use the calculator to explore the scenario, then compare financing structures based on your goals.
For illustrative purposes only
This calculator provides estimates based on user-entered assumptions. Simple break-even analysis does not account for every financial consideration and is not a loan offer, Loan Estimate, rate quote, approval or commitment to lend.