About this tool
Compute how many months you must keep the new loan for the refinance to break even on closing costs through reduced monthly payments.
Formula
breakEvenMonths = closingCosts / monthlySavings
Worked example
$4,000 closing costs, $180/mo savings → ~22 months break-even.
Notes
If you plan to move or refinance again before break-even, the refinance loses money. Add ~6 months buffer for tax effects and rate-lock fees.