Not financial advice. Mortgage FV Calculator is a software calculator, not a personal-finance product or advisory service. It computes standard financial functions and displays the results for your convenience. Nothing here constitutes, or is intended to constitute, financial, investment, tax, legal, mortgage, credit, or insurance advice. Always consult a qualified professional before making any financial decision.
Refinance break-even calculator
A refinance is worth it only if you stay past the break-even month. This shows the monthly saving, how many months the closing costs take to recoup, and whether the new term actually reduces lifetime interest.
How to read this
If you expect to sell or refinance again before month 18, the closing costs outweigh the saving. A lower payment with higher lifetime interest is still a reasonable trade when cash flow is the goal — just make the choice knowingly. To value the saving as an investment stream, use the NPV view or the future value calculator.
Common questions
- How do you calculate the refinance break-even point?
- Divide total closing costs by the monthly payment saving. The result is the number of months you must stay in the home before the refinance pays for itself.
- Does a longer term make refinancing look better than it is?
- Yes. Resetting a 25-year balance back to 30 years lowers the payment but can raise lifetime interest. This calculator shows both the monthly saving and the lifetime interest change.
- What counts as closing costs?
- Origination and lender fees, appraisal, title and escrow, recording, and any discount points. Rolled-in costs still count — they are financed at the new rate.
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