Finance category
Mortgage, loan, investing, tax, and money calculators.
Refinance Breakeven Horizon Calculator
Refinance pays back in months. This calculator finds the breakeven.
Breakeven months
1 yr 5 mo
Monthly savings
$1,300
Net benefit at hold
$56,000
How the math works
Monthly savings = old − new. Breakeven = closing ÷ savings. Net benefit = savings × hold − closing.
Refinance breakeven horizon below 24 months almost always worth executing. Between 24-48 months requires confidence in holding through breakeven. Above 48 months: usually better to wait for more favorable rate environment or execute with cash-out to change the math.
How to Use
- Enter current monthly payment.
- Enter new monthly payment.
- Enter refi closing costs.
- Enter expected hold months.
- Read breakeven months.
Frequently Asked Questions
Rule of thumb?
Rate drop >75 bps + plan to hold >3 years = refi likely worthwhile. Smaller drops require longer holds. Each 25 bps shift changes breakeven by ~6-12 months on typical mortgages.
Hidden costs?
Application fee, appraisal, title, recording tax (some states), prepayment penalty on old loan, wire fees. Typical commercial refi all-in 1.5-3% of loan. Residential 2-5% of loan.
Cash-out?
Cash-out refinance has different math: trades leverage for cash. Breakeven less relevant; decision based on cash deployment NPV. Run both metrics for complete picture.
How often should I rerun this?
Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Refinance Break-Even Calculator
See how long monthly savings take to recover refinance closing costs and whether your expected hold period clears break-even.
Next calculator
Refinance Calculator
Compare current and new loan scenarios to estimate payment savings, closing-cost break-even, and lifetime cost changes.