Mortgage & financing

Refinance Break-even Calculator

Estimate how long monthly savings take to recover refinancing costs. Replace every default with figures that apply to your property and location.

What this calculator estimates

Estimate how long monthly savings take to recover refinancing costs. It combines the inputs below to produce Break-even time. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces 20.9 months. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Loan balance — sample input: 400000 currency units
• Current interest rate — sample input: 6.5 %
• New interest rate — sample input: 5.25 %
• Remaining amortization — sample input: 20 years
• Refinancing costs — sample input: 6000 currency units

How to interpret the result

Compare the payment with your total housing budget, not income alone. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Avoid assuming the lowest advertised rate applies to every borrower. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.