{"id":401,"date":"2014-11-27T16:06:42","date_gmt":"2014-11-27T14:06:42","guid":{"rendered":"http:\/\/wpcalc.com\/?p=401"},"modified":"2025-05-11T12:26:30","modified_gmt":"2025-05-11T09:26:30","slug":"refinance-breakeven-point","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/refinance-breakeven-point\/","title":{"rendered":"Refinance Breakeven Point Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 class=\"text-lg font-display font-bold\">Refinancing Payback Period Estimator<\/h2><\/div><div class=\"relative group inline-block\">\n  <button class=\"favorite\" id=\"favorite\" data-favorite-id=\"401\" data-favorite-title=\"Refinance Breakeven Point\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/refinance-breakeven-point\/\" data-favorite-excerpt=\"This Refinance Breakeven Point Calculator helps you determine how many months it will take to recover refinancing costs based on your monthly savings.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\"><\/span>\n  <\/button>\n  <div class=\"absolute right-full -translate-y-1\/2 top-1\/2 mr-2 w-max max-w-xs px-3 py-2 bg-gray-800 text-white text-xs rounded shadow-lg opacity-0 group-hover:opacity-100 transition-opacity duration-200 z-10 pointer-events-none\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/refinance-breakeven-point\/\" method=\"POST\" class=\"calculator\" id=\"calculator-401\" data-post=\"401\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field\" id=\"input-1\"><label for=\"field-1\">Loan Balance<\/label><input type=\"number\" name=\"loan_balance\" id=\"field-1\" min=\"0\" step=\"100\" value=\"250000\"\/><div class=\"unit\">$<\/div><small>Enter your remaining loan balance<\/small><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">Current Monthly Payment<\/label><input type=\"number\" name=\"current_monthly_payment\" id=\"field-2\" min=\"0\" step=\"10\" value=\"1500\"\/><div class=\"unit\">$<\/div><small>Enter your current monthly mortgage payment<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">Current Interest Rate<\/label><input type=\"number\" name=\"current_interest_rate\" id=\"field-3\" min=\"0\" max=\"100\" step=\"0.01\" value=\"5\"\/><div class=\"unit\">%<\/div><small>Enter your current interest rate<\/small><\/div><div class=\"field\" id=\"input-4\"><label for=\"field-4\">Refinancing Interest Rate<\/label><input type=\"number\" name=\"refinancing_interest_rate\" id=\"field-4\" min=\"0\" max=\"100\" step=\"0.01\" value=\"4\"\/><div class=\"unit\">%<\/div><small>Enter new interest rate for refinancing<\/small><\/div><div class=\"field\" id=\"input-5\"><label for=\"field-5\">Refinance Loan Term<\/label><input type=\"number\" name=\"refinance_loan_term\" id=\"field-5\" min=\"1\" step=\"1\" value=\"30\"\/><div class=\"unit\">years<\/div><small>Enter new loan term in years<\/small><\/div><div class=\"field\" id=\"input-6\"><label for=\"field-6\">Closing Costs Type<\/label><div class=\"grid grid-cols-1\"><select id=\"field-6\" name=\"closing_costs_type\"><option value=\"points\">percentage<\/option><option value=\"cash\">cash amount<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-7\"><label for=\"field-7\">Closing Costs Value<\/label><input type=\"number\" name=\"closing_costs_value\" id=\"field-7\" min=\"0\" step=\"0.01\" value=\"2\"\/><div class=\"unit\"><\/div><small>Enter either percentage or fixed cost depending on the type<\/small><\/div><div class=\"field\" id=\"input-8\"><label for=\"field-8\">Finance Closing Costs?<\/label><div class=\"grid grid-cols-1\"><select id=\"field-8\" name=\"finance_closing_costs\"><option value=\"no\">No<\/option><option value=\"yes\">Yes<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"401\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>New Monthly Payment<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>Monthly Payment Reduction<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Break-even Time<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"months\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-4\"><span class=\"field-title\"><span>Total Interest (Current Loan)<\/span><\/span><span class=\"field-value\" id=\"result-4\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-5\"><span class=\"field-title\"><span>Total Interest (Refinanced Loan)<\/span><\/span><span class=\"field-value\" id=\"result-5\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-6\"><span class=\"field-title\"><span>Interest Saved<\/span><\/span><span class=\"field-value\" id=\"result-6\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-7\"><span class=\"field-title\"><span>Net Refinancing Savings<\/span><\/span><span class=\"field-value\" id=\"result-7\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"401\" aria-live=\"polite\"><h2 class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/h2><div class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center; margin: 32px 0;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-1721569815777345\"\n     data-ad-slot=\"6317458308\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n<p><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Refinance Break-even Point Formulas<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[\n\\text{New Payment} = \\frac{P \\times r}{1 &#8211; (1 + r)^{-n}}\n\\]\n\\[\n\\text{Closing Costs} =\n\\begin{cases}\nP \\times \\frac{x}{100}, &#038; \\text{if expressed as a percentage} \\\\\n\\text{cash value}, &#038; \\text{if entered as fixed amount}\n\\end{cases}\n\\]\n\\[\n\\text{Months to Breakeven} = \\frac{\\text{Closing Costs}}{\\text{Monthly Savings}}\n\\]\n<\/div>\r\n\t<\/figure>\r\n\t<br \/>\n<strong>Where:<\/strong><\/p>\n<ul>\n<li>$$P$$ = Loan principal<\/li>\n<li>$$r$$ = Monthly interest rate<\/li>\n<li>$$n$$ = Number of months<\/li>\n<li>$$x$$ = Closing cost percentage (if applicable)<\/li>\n<li>$$Monthly Savings$$ = Old monthly payment \u2013 New monthly payment<\/li>\n<li>$$Months to Breakeven$$ = Time required to recover refinancing costs<\/li>\n<\/ul>\n<p>\r\n<\/section><br \/>\n<section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Refinance Break-even Point \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<p>\n<strong>Suppose:<\/strong><\/p>\n<ul>\n<li>Old payment = $1,500    <\/li>\n<li>New payment = $1,300    <\/li>\n<li>Monthly savings = $200    <\/li>\n<li>Closing costs = $3,600<\/li>\n<\/ul>\n<p><strong>Calculation:<\/strong><\/p>\n<ol>\n<li>$$\\text{Months to Breakeven} = \\frac{3,600}{200} = 18$$<\/li>\n<\/ol>\n<p>So, you\u2019ll recover your refinancing costs in <strong>18 months<\/strong>.<\/p>\n\r\n<\/section><\/p>\n<p>The Refinance Breakeven Point Calculator helps homeowners decide whether refinancing makes financial sense. By comparing closing costs to monthly savings, it estimates how long it will take to recoup the investment in refinancing. It supports both fixed and percentage-based cost inputs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This Refinance Breakeven Point Calculator helps you determine how many months it will take to recover refinancing costs based on your monthly savings.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-401","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=401"}],"version-history":[{"count":2,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/401\/revisions"}],"predecessor-version":[{"id":64404,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/401\/revisions\/64404"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}