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Refinance Break-Even Calculator
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Your numbers
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Break-even
29 mo
You break even in 29 months — before you plan to move, so you come out about $6,562 ahead.
No credit check to see options. Estimates use principal and interest only.
How this calculator works
The break-even point is the number of months it takes for a refinance's monthly savings to repay its closing costs. The formula is simple: closing costs ÷ monthly savings = months to break even. If a refinance costs $6,000 and saves $200 a month, you break even in 30 months.
Break-even matters because closing costs are paid up front, while savings arrive slowly. If you sell the home or refinance again before you reach break-even, you lose money on the deal even if your rate went down. That is why this calculator asks how long you plan to stay. It compares your break-even month with your expected time in the home and shows how far ahead or behind you would be on the day you leave.
Enter your loan balance, current rate, the new rate you've been offered and the closing costs from your Loan Estimate. If you don't have a quote yet, 2% to 5% of the loan amount is a common range — our closing costs calculator can help estimate it. Monthly savings here compare 30-year principal-and-interest payments at each rate on the same balance, so taxes, insurance and mortgage insurance are not included.
A short break-even — under two years — is generally comfortable for most homeowners. Between two and four years, it depends on how sure you are about staying. Beyond four or five years, small changes in your plans can erase the benefit. Note that resetting to a new 30-year term can make the monthly savings look bigger than the true cost difference, because you're also extending the payoff date.
Worked example at this week's rates
On a $300,000 balance, dropping from 8.13% to this week's 7.11% average lowers the 30-year payment by $209 a month. With $6,000 in closing costs you break even in 29 months; if you stay five years you come out about $6,562 ahead.
PMMS is a national purchase-mortgage benchmark, not a refinance quote, so your own offer may be higher or lower.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- How do you calculate refinance break-even?
- Divide total closing costs by the monthly payment savings. The result is the number of months until the savings have paid back the costs.
- What is a good break-even point for a refinance?
- There is no single rule, but the sooner the better. The key test is whether you expect to keep the loan longer than the break-even period.
- Should I include taxes and insurance in monthly savings?
- Usually not, since escrow costs stay roughly the same after a refinance. Include mortgage insurance if the refinance removes or adds it.
- What if my payment doesn't go down?
- Then there is no break-even on monthly savings. A refinance can still make sense for other reasons, such as a shorter term or switching from an adjustable rate.
- Does a no-closing-cost refinance have a break-even?
- With no up-front costs the break-even is effectively immediate, but you typically pay a higher rate or a larger balance instead. Compare total interest over the time you plan to keep the loan.
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