Refinance Break-Even Calculator
Compare your current loan vs. a new rate · Find your break-even point
Current Loan
Remaining principal owed
27.0 years
New Loan Terms
Typically 2-3% of loan balance
Year-by-Year Comparison
| Year | Current Balance | New Balance | Cumulative Savings |
|---|---|---|---|
| 1 | $276,525 | $276,719 | -$3,527 |
| 2 | $272,790 | $273,227 | -$554 |
| 3 | $268,774 | $269,510 | +$2,418 |
| 4 | $264,458 | $265,554 | +$5,391 |
| 5 | $259,818 | $261,344 | +$8,364 |
| 6 | $254,831 | $256,863 | +$11,337 |
| 7 | $249,469 | $252,094 | +$14,310 |
| 8 | $243,706 | $247,018 | +$17,283 |
| 9 | $237,510 | $241,616 | +$20,255 |
| 10 | $230,850 | $235,866 | +$23,228 |
Cumulative savings includes closing costs paid upfront for the new loan.
How This Calculator Works
This calculator compares the total cost of your current loan (remaining payments at your current rate) against a new loan at the specified rate and term. The break-even point is the number of months it takes for monthly savings to equal the closing costs you paid to refinance. Total interest saved is the difference in lifetime interest between the two loans. This is a rate-and-term refinance calculator — for cash-out refinance analysis, use our Cash-Out Refi Calculator.
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Verdict
Break-even in 27 months. Worth it if you plan to hold the property for at least 3 years.
= 2.3 years
Side-by-Side
Current P&I
$1,971.74
New P&I
$1,724.01
Current Total Interest
$358,845
New Total Interest
$340,643
Current Total Cost
$638,845
New Total Cost
$627,143
incl. closing costs
All calculations are principal & interest only. Does not include taxes, insurance, or PMI.