Refinance Calculator: Monthly Savings and Break-Even Point
By the CallARealtor team · Published November 3, 2026 · Updated November 3, 2026
Does refinancing pay off for you?
Example numbers are filled in. Change any of them and results update instantly.
Your current loan
The new loan
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CallARealtor is an independent information site, not a real estate brokerage or lender, and is not affiliated with the National Association of REALTORS®. Results are estimates for planning, not loan offers or financial advice.
How break-even is calculated
We compare the principal and interest payment on your current loan for the years you have left with the payment on the new loan. Break-even is your closing costs divided by the monthly savings. We also show total interest left on each loan, because resetting to a new 30-year term can lower the payment but raise the total interest you pay.
Assumptions
- Both loans are fixed-rate. Taxes and insurance are left out because they don't change when you refinance.
- The new rate is an example. Get real Loan Estimates, which list rate, points and closing costs on page 2 (CFPB guide).
- Check your current loan for a prepayment penalty.
Frequently asked questions
How much lower should my rate be to refinance?
There is no single rule. What matters is whether your monthly savings cover the closing costs before you sell or refinance again. Use the break-even months above.
Should I add closing costs to the loan?
Adding them avoids paying cash now but increases your balance and the interest you pay. Compare both options above.
What are discount points?
Upfront fees paid to lower the rate. The CFPB explains how points and lender credits trade upfront cost against rate.