← Back to Blog
How to Calculate Your Refinance Breakeven Point
2025-09-17
Refinancing only pays if your monthly savings offset the closing costs within a timeframe that makes sense for you.
Breakeven formula
Breakeven months ≈ Closing Costs ÷ (Old Payment − New Payment).
Beyond the formula
Consider how long you’ll keep the property and potential rate changes or fees.
Sensitivity check
Use the calculator to try multiple rate and term scenarios.
| Input | Meaning |
|---|---|
| Closing costs | Upfront fees to refinance |
| Old vs new payment | Monthly saving after refi |
| Breakeven months | Costs / Monthly saving |
Try it now: Refinance Breakeven Calculator and Mortgage Calculator.
Disclaimer: These tools provide estimates only and are not financial advice.