How the Refinance Savings Calculator works

Model payment changes and break-even timing for a refinance.

Show the math

Formula

Break-even months = closing costs ÷ (old payment − new payment). Holding past that horizon is the usual test — it is still not a promise the refinance saves money after tax, moving, or a second refinance.

Inputs

Current balance
Current rate
New rate
Remaining term
Closing costs (include points and origination)

Notes

Break-even ignores tax benefits and opportunity cost of the closing outlay.
Put discount points and origination in closing costs. A lender credit reduces the numerator.

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Include points and origination in break-even

A lower note rate still loses if you move or refinance again before costs are earned back. Put points, origination, title, and prepaid interest into closing costs, not just the appraisal. Snapshot as of 2026-08.

Current balance, rate, and remaining term: Use the note you have, not a statement “remaining interest.” Remaining term changes how much interest you would have paid anyway.
New rate: Illustration only. Discount points that buy the rate down belong in closing costs, not hidden in the rate field.
Closing costs (include points and origination): Origination can be a fee or a lender credit. Discount points are a prepaid interest cost. Title, recording, and prepaid interest still apply. Break-even months = those costs ÷ monthly principal-and-interest savings. Credits reduce the numerator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

APR (Annual Percentage Rate): The yearly cost of a loan expressed as a percentage, including the interest rate plus most lender fees.
Discount points: An optional upfront fee paid to the lender in exchange for a permanently lower interest rate.
LTV (Loan-to-Value Ratio): The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.
Refinance: Replacing an existing mortgage with a new one to change the rate, the term, or both.
Cash-out refinance: Refinancing for more than you owe and taking the difference in cash, converting equity into spendable funds.

Browse the full real estate glossary

Illustrated refinance break-even as of 2026-08. Dollars are examples, not your file.

Swipe sideways to compare every column.

Question	Modest costs	Costs include a point	Thin monthly savings
Illustrated cash costs	$3,000	$6,000	$4,000
Illustrated monthly P&I savings	$200	$150	$50
Break-even months	15 months	40 months	80 months
If you move or refinance again in 24 months	About 15 months. In this illustration, a 24-month stay earns the costs back.	About 40 months. In this illustration, a 24-month stay does not earn the costs back.	About 80 months. In this illustration, a 24-month stay does not earn the costs back.

Break-even months ≈ cash costs ÷ monthly principal-and-interest savings. Cash costs include appraisal, title, recording, prepaid interest, origination, and discount points, minus lender credits. Use old P&I minus new P&I. Do not treat a tax, insurance, or HOA change as “savings.” Dollar figures on education pages are worked examples for illustration. They are not your payment, cash to close, or an offer of credit.

Related education

When a Lower Rate Still Loses After Costs

Break-even months include points and origination, not just the appraisal. A lower note rate can still lose if you move or refinance again first.

Recast vs Refinance

A recast re-amortizes the same note after a principal curtailment. A refinance is a new loan with costs. Not a savings quote.

“No Closing Cost” Refinance: The Cost Is in the Rate

A lender credit that covers fees is usually paid for with a higher note rate. Run break-even. Not a free refinance and not a streamline.

Discount Points: Breakeven Without a Sales Pitch

One point is typically 1% of the loan paid to lower the note. Break-even is cost divided by monthly P&I savings. Not a temporary buydown and not a pricing slogan.

Streamline Refi: What “Less Docs” Still Requires

FHA Streamline and VA IRRRL reduce documentation. Occupancy, payment history, and a net-benefit test still apply. Not a generic refinance and not no-docs.

Mortgage refinance in Utah

Rate-and-term vs cash-out, break-even, and process. Not every lower headline rate is a savings.

Utah Refinance Calculator

Current Mortgage

All required fields must be filled to see results. Rates shown are example defaults, not live quotes.

Current Loan Balance

Current Interest Rate

Current Monthly Payment (PITI)

New Mortgage

New Interest Rate

New Loan Term (years)

Refinancing Closing Costs

Annual Property Tax

Annual Homeowners Insurance

Monthly Payment Comparison

Current Payment

$1,764

New Payment

$1,614

P&I: $1,264 • Escrows: $350

Monthly Payment Savings

$150

Break-Even Analysis

Break-Even Time

20.0 months

Time to recoup closing costs from payment savings

• Closing costs: $3,000

• Monthly payment savings: $150

• Est. remaining term on current loan: 25.0 years

Savings Summary

Net P&I Payment Savings

$41,921

P&I difference over 25.0 years (aligned horizon) minus closing costs

• Estimated interest savings over the same horizon: -$19,658

• Closing costs: $3,000

• Net P&I payment savings: $41,921

• This refinance extends your remaining term (25.0 years left → 30 years).

Recommendations

⚠ Consider if you plan to stay long enough for break-even and interest savings to matter

• Factor in your plans to stay in the home

• Consider the opportunity cost of closing costs

• Shop around for the best rates and fees

• Consult with a mortgage professional

About Refinancing

When to Consider Refinancing:

Interest rates have dropped significantly
Your credit score has improved
You want to change loan terms
You need to remove PMI
You want to consolidate debt

Important Factors:

Break-even time vs. how long you'll stay
Total closing costs and fees
Impact on loan term and total interest
Example rates in this tool are not live market quotes
Your financial situation

Want a follow-up?

Leave your email and the Ondo team will follow up about your Refinance numbers. We do not email the results.