Calzento

When does a refi pay back?

Two questions matter for any refinance: (1) how many months of lower payments are needed before the closing costs are recouped, and (2) does the new loan's lifetime interest actually beat what you'd pay finishing the current loan. This calculator answers both — most competitor tools answer only the first.

Last updated 2026-05-13

Your current loan

Check your latest statement or lender portal for the exact figure.
≈ 25.0 years left

Refinance offer

A 30-year refi resets the clock — see lifetime cost below.
≈ 2.3% of new loan
Break-even point
Refinance breaks even at month 17, 1.4 years. Monthly savings $460.
You break even at month 17. Stay longer than that and the refi pays off; sell or move sooner and you lose money on closing costs.
Monthly comparison
Current P&I
$2,586/mo
New P&I
$2,127/mo
Monthly savings
+$460/mo
Lifetime interest (reset-clock check)
Finish current loan
$425,941
Refi (interest + closing)
$423,589
Refi vs. stay
−$2,351
Negative (green) = refi saves over the new loan's lifetime. Positive (ochre) = refi monthly savings come at a higher total cost because the new loan's longer term resets the clock. Both can be true at once — common with 25-year-remaining → fresh-30 refis.
Methodology

Break-even ≠ "worth it"

The break-even formula is straightforward: closing costs ÷ monthly savings. A $6,000 refi that drops your payment by $200/month breaks even at month 30 — pay $6,000 once, save $200 every month after.

The trick: refinancing 20 years into a 30-year into a fresh 30 resets the clock. Even with a meaningfully lower rate, total interest over the new loan's full term can EXCEED the interest you'd pay finishing the original. The lifetime-interest panel surfaces this.

Common pattern: 7-year break-even with a $30k lifetime cost penalty. Refi makes sense if you plan to stay 10+ years AND you have a productive use for the freed-up monthly cash that beats the interest math. Otherwise, consider a shorter new term (20-year or 15-year refi) instead of resetting to 30.

Caveats not modeled: tax-deductibility of mortgage interest (varies by income and standard-deduction threshold post-2018), prepayment penalties on existing loan, opportunity cost of closing-cost cash. Treat outputs as starting points, not decisions.

Related

Compare scenarios
Mortgage scenarios side-by-side. Useful for comparing refi term choices (15/20/30).
Open →
15-year fixed refi
The other refi path: keep your original payoff date intact at a lower rate.
Open →
Affordability by income
Max home price from your income via the 28/36 DTI rule.
Open →