Refinance Break-Even Calculator (Free)
Compare reset-term vs keep-term refinance scenarios. Estimate monthly savings, breakeven month, and total interest saved — all without sharing your data.
No API calls. All math happens locally in your browser.
Inputs
Enter your current loan details and the refinance offer. We’ll compare reset-term vs keep-term scenarios.
Reset Term vs Keep Term
Reset term
Replace your existing loan with the full new term (e.g., another 30-year mortgage). Payments drop more, but you may pay interest longer.
- Great when you need monthly payment relief.
- Breakeven focuses on closing costs and penalties.
- Interest savings may shrink if you extend the term too far.
Keep term
Match the remaining months of your current loan. A fair apples-to-apples comparison for total interest saved.
- Monthly savings are smaller, but timeline stays on track.
- Breakeven is purely from the rate drop.
- Helps decide whether refinancing is worth the paperwork.
How Many Months to Break Even?
The break-even month estimates when cumulative monthly savings offset upfront costs and penalties. The calculator assumes payments are made monthly and costs are paid at closing (unless you roll them into the new loan).
FAQ
Are closing costs included in the breakeven?
Yes. Enter the total closing costs and any prepayment penalty. If you roll them into the new loan, they increase the new principal; otherwise we treat them as cash paid upfront.
Does this calculator include taxes or deductions?
No. Property tax, mortgage insurance, or potential tax deductions are not included. Results are for informational purposes only.
APR vs APY — which do I enter?
Use the nominal annual percentage rate (APR) from your loan estimate. The tool converts it into a monthly rate for amortization calculations.