Refinancing

How to Calculate Your Break-Even Point

The one calculation every refinancing homeowner should run.

4 min readUpdated 2026Refinancing

The formula

Break-even months = total closing costs ÷ monthly payment savings. If you'll stay in the home longer than that, the refi likely pays off.

What to include

Lender fees, title, appraisal, and Florida state fees on the new mortgage. Don't count prepaid escrows — those money is still yours.

Refinance Break-Even Calculator

Compute the months to recover your closing costs.

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Key takeaways

  • Compare break-even to your time-in-home plan.
  • Exclude escrows from the math.

Frequently asked questions

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