Refinance Payment-Cost Recovery Calculator
Estimate when monthly principal-and-interest payment reduction recovers stated closing costs, then compare estimated remaining loan balances at the date you plan to move.
What you still owe on your current mortgage.
The rate on your existing mortgage (not APR).
Roughly how many years are left on your existing schedule.
The rate you'd get on the refinance.
Enter the proposed term shown in the lender's quote.
Enter lender fees, appraisal, title, recording fees, and points from the quote or Loan Estimate.
Used as the comparison date for payment reduction and estimated remaining loan balances.
Payment and balance comparison
How payment-cost recovery works
- 1. We compute your current monthly payment and your new monthly payment using a standard amortization formula.
- 2. We compare cumulative scheduled payments month by month, stopping each payment stream at its loan's payoff. The first recovery point that remains intact through your planned move is reported.
- 3. We estimate each loan's remaining balance at your planned move date and combine that balance difference with payment reduction after closing costs.
This is not a refinance recommendation. The estimate includes scheduled principal-and-interest payments and remaining loan balances at your planned move date, but not taxes, PMI changes, financed closing costs, opportunity cost, or the full cost after that date. See the full methodology.
Common questions
- What is the break-even point on a mortgage refinance?
- The earliest month when cumulative scheduled principal-and-interest payment reduction equals the stated closing costs and remains recovered through the planned move. Each loan's payment stream stops at its scheduled payoff. It is not a conclusion about whether refinancing is beneficial.
- How is the formula calculated?
- The calculator compares cumulative scheduled principal-and-interest payments month by month, stops each payment stream at its scheduled payoff, and reports the first recovery point that remains intact through the planned move. It also estimates each remaining loan balance at that date.
- What counts as a closing cost?
- Enter the lender origination fee, appraisal, title insurance, recording fees, and any discount points shown in the lender's quote or Loan Estimate.
- Does this tell me whether refinancing is worth it?
- No. It compares scheduled principal-and-interest payments, stated closing costs, and estimated remaining loan balances at your planned move date. Taxes, PMI, points financing, opportunity cost, and your broader financial goals require separate review.
- Does this account for resetting my loan term?
- It flags a longer proposed term, stops each payment stream at its scheduled payoff, and includes estimated remaining loan balances at your planned move date. It does not calculate all interest paid after that date, so compare full amortization schedules before deciding.
Estimates only — not financial advice. This calculator reports a limited payment-and-balance comparison based on the numbers you enter. It is not a refinance recommendation. Real decisions involve your full financial picture, credit profile, lender quotes, taxes, insurance, and personal goals. Verify the comparison with a licensed mortgage professional before signing. See the methodology page for exactly how the math works and what it does not model.