MihsabaShare this free calculator
Send this tool to someone who needs the calculation.
How to use
- Enter Refinance costs.
- Enter Expected monthly savings.
- Calculate, then verify which items are included in the definition before comparing.
How it is calculated
Break-even months = refinance costs ÷ monthly savings
Example
Costs of 18,000 and monthly savings of 900 give a 20-month break-even and 10,800 annual savings.
Important notes
Compare expected holding period with break-even months, and also review changes in balance, term and rate rather than payment alone.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Break-even months | 18000 ÷ 900 | 20 months |
| Annual savings | 900 × 12 | 10,800 |
Frequently asked questions
Are monthly savings enough to decide?
No. Refinancing can change term, total interest and fees, so break-even is only one part of the decision.
Are these rates legally required?
No. This is a general math tool; actual fees, rates and rules vary by contract, provider and jurisdiction.
How should two scenarios be compared?
Use the same period and cost definitions, and change one variable at a time where possible.