Refinance Break-even Calculator: the true break-even, term reset and points

Your loans

Quick start

These eight give you a full answer. The rest uses typical assumptions; open the sections below to fine-tune.

Current loan balance from your statement

Current rate yearly

Years left on it e.g. 25 if 5 years in

yrs

New rate from the quote

New term

Closing costs lender and title fees, not points

Often 2–5% of the loan. Prepaid interest and escrow deposits aren't costs: you'd pay them anyway.

Points 1 point = 1% of the loan

pts

Years you expect to stay or keep this loan

yrs

Costs and payments

Roll closing costs and points into the new loan

Lender credit offsets costs

A credit in exchange for a slightly higher rate. It can cover costs but isn't paid out as cash.

Keep paying my old payment on the new loan

The extra goes to principal, so the new loan ends sooner. The chart always shows this line too.

Home value and PMI

Home value today the appraisal

PMI on your current loan /mo, 0 if none

Value when you bought PMI is measured on this

Your current PMI ends once you owe 80% of this, if you ask.

PMI on the new loan /mo, only above 80% of value

Taxes

Filing status

Your top federal tax rate your bracket

Do you itemize?

Other itemized deductions /yr

Savings and inflation

Return on the money saved /yr, 0 = cash

What the monthly savings, and the closing costs you'd otherwise keep, could earn. 4% is a typical high-yield savings rate; enter 0 to compare the loans alone.

Inflation /yr, for today's dollars

How far ahead (or behind) refinancing leaves you

New term Keep your payoff date Keep paying the old payment Break-even

Year-by-year payments, interest, balances and running lead for both loans
Year	Paid, current	Paid, new	Interest, current	Interest, new	Balance, current	Balance, new	Tax effect	Ahead by

What could change the answer

Payment, break-even, net gain and lifetime interest for each scenario
Scenario	Payment	Break-even	Ahead when you leave	Lifetime interest