How do you calculate the refinance break-even point?

The cashflow break-even point divides your total refinance closing costs by your monthly payment reduction. However, you should also compare total lifetime cost because extending the loan term can lower your monthly payment while increasing total interest paid.

Loan Refinance Break-Even Calculator

Q: Should I pay closing costs upfront or roll them into the new loan?

Paying closing costs upfront keeps your new loan principal smaller and avoids paying interest on the fees over the life of the loan. Rolling fees into the loan preserves your cash today but slightly increases your monthly payment and total interest.

Compare your current loan against a new refinance offer, including closing costs & break-even time.

1. Your Current Loan

Remaining Loan Balance ($)

Current Annual Rate (%)

Remaining Months

2. New Refinance Offer

New Annual Interest Rate (%)

New Loan Term (Months)

Closing Costs / Fees ($)

Roll closing costs into the new loan principal (instead of paying upfront)

Refinance Analysis

Current Monthly Payment

New Monthly Payment

Monthly Cashflow Change

Fee Break-Even Time

Current Loan: Total Remaining Cost

New Refinanced Loan: Total Cost (incl. Fees)

Metric	Current Loan	New Refinanced Loan
Loan Principal
Annual Interest Rate
Loan Term
Monthly Payment
Total Interest Paid
Closing Costs / Fees
Total Out-of-Pocket Cost

Next Step

Open New Refinanced Loan in Amortization Schedule

Generate the exact month-by-month payment table for your new loan offer.

Next Step

Invest Your Monthly Savings or Pay Off Faster?

Compare putting your monthly refinance savings back into the loan vs. investing them.

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Did this calculator help you evaluate your refinance offer?

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Frequently Asked Questions

The monthly cashflow break-even point divides your closing costs by your monthly payment reduction. However, always check the Total Out-of-Pocket Cost: if you refinance a loan with 4 years left into a new 7-year loan, your monthly payment will drop, but you may pay more total interest over the extended term.

Paying closing costs upfront keeps your new loan principal lower and avoids paying interest on the fees over the life of the loan. Rolling fees into the new loan keeps cash in your pocket today, but increases your monthly payment and total interest.