Finance · Refi / Equity
Refinance Break-Even
Compare current vs new mortgage payment and estimate break-even timing.
Last reviewed: February 18, 2026
Guided Flow
Next steps
Refi
Compare HELOC vs cash-out
Review equity-access structures side-by-side.
Refi
Open cash-out refi
Estimate monthly payment and net cash from a refinance.
Guide
Read: when to refinance
Match break-even timing to your expected hold period.
Related calculators
What this calculator does
Compare current vs new mortgage payment and estimate break-even timing.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/refinance-break-even.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Current loan balance = 340000 USD; Current interest rate = 7 %; Years remaining = 27 years; New interest rate = 6 %. Sample output: Current monthly payment: $2,338.57
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
What if the new payment is higher?
Then there is no payment-based break-even point under this setup. You may still refinance for other goals like shorter term payoff.
Should I compare APR instead of rate?
APR is useful for shopping, but this tool uses the note rate and separate closing costs for transparent break-even math.
Does this include escrow changes?
No. It compares principal and interest only. Add taxes and insurance separately if they will change.
Can I refinance into a shorter term?
Yes. Set a lower new term. Monthly payment may rise, but total interest can fall materially.
How accurate is break-even timing?
It is a planning estimate based on fixed payment assumptions. Actual results vary with payoff date and lender servicing details.