What is refinance break-even?

Cash closing costs divided by the drop in monthly principal and interest. If you finance the fees, the new payment is higher so break-even uses $0 cash out of pocket and the payment comparison still shows.

Is this extra principal or refinance vs sell?

No. Extra payments keep the same note. Refinance vs sell is a rental hold-or-exit sketch. This page is a rate-and-term refinance clock.

Should I reset to 30 years?

A longer term can cut the payment and raise lifetime interest. Compare both. Points, credits, and escrow are not in this sketch.

No. The amortization runs in this tab.

Runs in your browser · Last updated 7 September 2026

Free Mortgage Refinance Break-Even Calculator (US)

Free US mortgage refinance break-even calculator. Closing costs ÷ monthly P&I savings, optional financed fees. Not extra principal. Browser tool — nothing is uploaded.

Current balance ($)Current rate %Years leftNew rate %New term (years)Closing costs ($)

Finance closing costs into the new loan

Break-even is cash closing costs ÷ monthly P&I savings. A longer new term can drop the payment while raising lifetime interest. Not a lender quote — points, credits, and escrow stay off this sketch.

Current P&I

$1,896.20

New P&I

$1,703.37

Monthly savings

$192.84

Break-even

32 months

Interest, current note

$382,633

Interest saved after costs

$63,421

How to use this tool

Enter the remaining balance, current rate, and years left.
Enter the offered rate, new term, and closing costs.
Read monthly savings and months to earn the cash fees back.

Worked example

$300,000 left at 6.5% for 30 years is about $1,896 P&I. A 5.5% 30-year refinance with $6,000 cash closing lands near $1,703 — about $193 a month, break-even in 32 months. Shopping extra principal instead? Use the extra payment mortgage calculator.

Frequently asked questions

What is refinance break-even?: Cash closing costs divided by the drop in monthly principal and interest. If you finance the fees, the new payment is higher so break-even uses $0 cash out of pocket and the payment comparison still shows.
Is this extra principal or refinance vs sell?: No. Extra payments keep the same note. Refinance vs sell is a rental hold-or-exit sketch. This page is a rate-and-term refinance clock.
Should I reset to 30 years?: A longer term can cut the payment and raise lifetime interest. Compare both. Points, credits, and escrow are not in this sketch.
Uploaded?: No. The amortization runs in this tab.