The homeowner’s worksheet
Refinance break-even calculator
Compare your existing and proposed principal-and-interest payments to estimate when cash-paid refinancing costs could be recovered.
No signup required. Your entries stay in your browser. Illustrative estimates, not loan offers.
02 / Refinance break-even
When could costs be recovered?
A simple comparison of monthly principal-and-interest payments and cash-paid refinancing costs.
Before making a decision
Understand the estimate.
A payment-based payback estimate
Cash-paid refinancing costs are divided by a positive monthly principal-and-interest reduction, rounded up to the next full month. If the proposed payment is the same or higher, there is no payment-based payback.
Keep the comparison consistent
Leave escrow out of the current monthly payment. Include financed fees in the proposed loan amount; do not also include those fees in cash-paid costs. Exclude escrow deposits and prepaid expenses you would otherwise pay.
What this leaves out
A longer loan term can lower the payment while increasing total interest. This tool does not compare remaining balances, the old loan’s total interest, tax effects, opportunity costs, future insurance changes or the value of cash-out proceeds. Use comparable loan amounts and review the full borrowing period.
Compare actual written terms using the CFPB Loan Estimate explainer. The Federal Reserve’s historical refinancing guide explains the basic payback concept. This estimate does not evaluate eligibility or recommend a loan.