Compare your current payment with a proposed refinance payment to see whether closing costs are likely to pay back quickly enough.
Break-even timing
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Enter the current and new rates plus balance, closing costs, and remaining term to estimate refinance break-even.
Tap an example to prefill the calculator with sample values.
Meaningful rate drop
Same balance and term with lower refinance rate
A homeowner wants a clean read on whether a lower rate actually pays back the closing costs in a reasonable window.
Result: The refinance lowers the payment enough to create a clear break-even window and a longer-run savings estimate.
Marginal refinance
Small payment win with slower payback
Useful when a lender offers a slightly lower rate but the homeowner is not sure the savings justify the transaction costs.
Result: The payment does improve, but the break-even period stretches enough to deserve caution.
Rate barely changes
Little to no economic edge after costs
A quick check for situations where the refinance headline sounds appealing but the payment improvement may be too small to matter.
Result: The break-even period becomes long enough that many homeowners would skip the refi.