Refinance break-even calculator
Compare upfront refinance costs to payment and interest changes.
Your inputs
Your results
Ready when you areYour results will appear here.
Compare two scenarios.
Run the tool, then save A or B to compare headline results and entered values. Keep currencies, periods and assumptions consistent.
Saved scenarios stay in this browser until you clear them. Reset clears the working result; it keeps saved scenarios. Use Clear saved scenarios on a shared device.
Run the tool to save your first scenario.
How it works
Compare existing and replacement fixed-rate loans on the same principal. Report simple payment-cost break-even separately from interest plus closing costs and remaining balances at a chosen horizon.
Read the source reference ↗A few things to know
Lower payments can reflect a longer term rather than lower total cost. Costs are paid upfront; excludes financed fees, penalties, taxes and daily accrual. Simple payment break-even is not total economic break-even.
Results use your inputs. Keep all money amounts in the same currency.
When to use this tool
Review a refinance on more than its lower payment. Compare upfront cost, interest during your holding period and the remaining principal.
- Compare a refinance offer.
- Inspect holding-period interest.
- Check remaining principal.
How to use refinance break-even calculator
Prepare the inputs
Use balances and rates from current statements, in one currency.
Choose the settings
Enter the scenario assumptions; this tool does not fetch market rates.
Review and export
Compare the report with the actual account terms before acting.
Try the supplied example
Inputs
principal: 10000; rate: 6; years: 3; new rate: 4; new years: 3; costs: 500; horizon: 24
Result
The example compares 6% with 4% on the same 10,000 principal and includes 500 in closing costs.
What it means
A payment break-even alone can hide a longer repayment term.
Common mistakes to avoid
Lower payment can come from extending the loan
Lower payment can come from extending the loan.
Simple payment break-even omits balance differences
Simple payment break-even omits balance differences.
Frequently asked questions
Definitions, edge cases, and practical next steps for this tool. Search all tool FAQs ↗
Are closing costs financed?
No. They are treated as a separate upfront cash cost.
What is simple payment break-even?
Upfront cost divided by positive monthly payment reduction, rounded up to a month.
Is that total economic break-even?
No. It ignores different remaining balances and opportunity costs.
Why compare balances at the horizon?
A longer term can reduce payment while leaving more principal outstanding.
What happens with no payment savings?
The tool reports no positive payment-savings break-even.
Are penalties included?
No. Add contractual penalties to upfront costs if appropriate.
Are my inputs uploaded or stored?
Processing happens locally in your browser. This tool does not upload inputs. Downloads stay on your device; sharing or opening them in another service is your choice.
What should I check before using the output?
Lower payments can reflect a longer term rather than lower total cost. Costs are paid upfront; excludes financed fees, penalties, taxes and daily accrual. Simple payment break-even is not total economic break-even.
Explore the topic in the blog
Sources and method
Use the references below to check definitions and platform guidance. The model’s scope and limits are explained above. Read our editorial standards.