Mortgage Refinance Break-Even Calculator
Enter your loan balance, current and new rate and term, and closing costs. We compute both payments with the standard amortization formula and show the exact month you recover the fees.
1Your loan
Defaults model a $300,000 loan dropping from 6.5% to 6.0%. Replace them with your own figures.
2Your break-even
How break-even works
A refinance saves you money only after your monthly savings repay the closing costs. The math is simple: take your new monthly payment away from your old one to get the monthly saving, then divide the closing costs by that saving. The result is the number of months until you break even.
Two things move the line. A bigger rate drop or a shorter term lowers your new payment more, so you save faster. Higher closing costs push the break-even month further out. The chart on the right draws your cumulative savings (amber) climbing until it crosses the flat closing-cost line (ink) — that crossing point is your break-even.
Worked example
On a $300,000 loan at 6.5% dropping to 6.0% over 30 years, the payment falls from about $1,896 to $1,799 — a saving of roughly $97 a month. With $6,000 of closing costs, you break even in about 62 months, or just over five years. Stay longer than that and the refinance is clearly worth it; move sooner and it is not.
Refinance closing costs by state
The break-even math itself does not depend on your state — it is pure closing costs divided by monthly savings. But closing costs do differ by state because of transfer taxes, title insurance and attorney fees. The figures below are representative averages from public summaries (Bankrate, ValuePenguin).
| State | Typical closing costs | Median home price | Illustrative break-even* | Why costs vary |
|---|---|---|---|---|
| Alabama | $2,890 | $230,000 | ~39 mo | Alabama has no state transfer tax, so closing costs stay among the lowest in the South. |
| Alaska | $3,300 | $360,000 | ~28 mo | Alaska charges no state income tax and typically low recording fees, keeping refinance costs modest. |
| Arizona | $3,080 | $430,000 | ~22 mo | Arizona adds a modest documentary stamp tax on refinance documents. |
| Arkansas | $2,910 | $210,000 | ~43 mo | Arkansas keeps recording and title fees low, so refis are relatively cheap. |
| California | $5,820 | $800,000 | ~22 mo | California layers county transfer taxes and high title fees on top of standard refi costs. |
| Colorado | $3,900 | $560,000 | ~21 mo | Colorado borrowers often pay above-average recording and title insurance fees. |
| Connecticut | $4,430 | $390,000 | ~35 mo | Connecticut combines high conveyance taxes with steep title and attorney costs. |
| Delaware | $3,410 | $350,000 | ~30 mo | Delaware levies a state transfer tax on mortgages, lifting refinance closing costs. |
| Florida | $5,750 | $400,000 | ~44 mo | Florida imposes a documentary stamp tax on the new loan, a major refinance cost. |
| Georgia | $3,005 | $340,000 | ~27 mo | Georgia refinances are usually inexpensive outside the largest metro counties. |
| Hawaii | $3,820 | $830,000 | ~14 mo | Hawaii’s remote title and escrow market pushes closing costs above the national norm. |
| Idaho | $2,880 | $460,000 | ~19 mo | Idaho keeps recorder and title fees among the lowest in the Mountain West. |
| Illinois | $4,000 | $290,000 | ~42 mo | Illinois stacks county and state transfer taxes, especially in Chicago-area refinances. |
| Indiana | $2,200 | $250,000 | ~27 mo | Indiana is one of the cheapest states for refinance closing costs. |
| Iowa | $2,190 | $220,000 | ~31 mo | Iowa routinely ranks among the lowest closing-cost states nationwide. |
| Kansas | $2,720 | $240,000 | ~35 mo | Kansas recording fees are low, holding refinance costs down. |
| Kentucky | $2,730 | $219,000 | ~38 mo | Kentucky refinances stay affordable with modest title and recording charges. |
| Louisiana | $2,930 | $221,000 | ~41 mo | Louisiana’s mortgage recording taxes add a small but real refinance expense. |
| Maine | $3,110 | $358,000 | ~27 mo | Maine borrowers pay typical New England title and recording fees. |
| Maryland | $4,600 | $420,000 | ~34 mo | Maryland’s state and county transfer taxes make refinancing comparatively costly. |
| Massachusetts | $4,630 | $600,000 | ~24 mo | Massachusetts refinances often require attorney closing, raising total costs. |
| Michigan | $3,170 | $260,000 | ~37 mo | Michigan keeps title and recording fees near the national average. |
| Minnesota | $2,950 | $338,000 | ~27 mo | Minnesota recording fees are moderate and predictable. |
| Mississippi | $2,750 | $190,000 | ~45 mo | Mississippi is one of the most affordable states for refinance closing costs. |
| Missouri | $2,030 | $248,000 | ~25 mo | Missouri is consistently the cheapest state for refinance closing costs. |
| Montana | $2,660 | $450,000 | ~18 mo | Montana’s slower title market keeps fees slightly above the Mountain average. |
| Nebraska | $2,700 | $270,000 | ~31 mo | Nebraska recording and title fees stay low. |
| Nevada | $3,610 | $448,000 | ~25 mo | Nevada adds county transfer taxes that lift refinance costs above neighbors. |
| New Hampshire | $3,150 | $452,000 | ~21 mo | New Hampshire’s high property taxes make the monthly math especially sensitive to rate drops. |
| New Jersey | $4,910 | $500,000 | ~30 mo | New Jersey pairs high property taxes with steep title and recording costs. |
| New Mexico | $2,860 | $300,000 | ~29 mo | New Mexico keeps recorder and escrow fees modest. |
| New York | $5,590 | $451,000 | ~38 mo | New York’s mortgage recording tax is one of the largest refinance line items in the country. |
| North Carolina | $3,130 | $342,000 | ~28 mo | North Carolina refinances are typically mid-pack on closing costs. |
| North Dakota | $2,550 | $288,000 | ~27 mo | North Dakota is among the lowest-cost states for refinancing. |
| Ohio | $2,860 | $228,000 | ~39 mo | Ohio closing costs sit near the national average. |
| Oklahoma | $2,990 | $232,000 | ~40 mo | Oklahoma keeps title and recording charges low. |
| Oregon | $4,050 | $490,000 | ~25 mo | Oregon adds a documentary fee and above-average title costs. |
| Pennsylvania | $4,240 | $292,000 | ~45 mo | Pennsylvania’s 2% state stamp tax on mortgages is a major refinance expense. |
| Rhode Island | $3,780 | $440,000 | ~26 mo | Rhode Island refinances carry above-average title and recording fees. |
| South Carolina | $3,220 | $298,000 | ~33 mo | South Carolina keeps closing costs moderate. |
| South Dakota | $2,680 | $302,000 | ~27 mo | South Dakota recording fees are low, holding refi costs down. |
| Tennessee | $3,060 | $330,000 | ~29 mo | Tennessee refinances are typically affordable. |
| Texas | $3,960 | $339,000 | ~36 mo | Texas bans state transfer taxes but title insurance rates are filed and often high. |
| Utah | $3,100 | $520,000 | ~18 mo | Utah keeps recorder fees low and refinances inexpensive. |
| Vermont | $3,530 | $362,000 | ~30 mo | Vermont’s small market and high property taxes make refinance math rate-sensitive. |
| Virginia | $4,130 | $392,000 | ~32 mo | Virginia adds a grantor’s tax and moderate recording fees to refinances. |
| Washington | $4,705 | $580,000 | ~25 mo | Washington’s high home prices and above-average title fees raise total costs. |
| West Virginia | $3,010 | $170,000 | ~54 mo | West Virginia is among the cheapest states for refinance closing costs. |
| Wisconsin | $2,870 | $291,000 | ~30 mo | Wisconsin keeps title and recording fees near the national average. |
| Wyoming | $2,920 | $352,000 | ~26 mo | Wyoming has no state income tax and low recording fees, keeping refis cheap. |
*Illustrative only: assumes a 0.5% rate drop on that state’s median home price on a 30-year loan. Your real break-even depends on your own balance, rate and fees — use the calculator above.
What if rates drop 0.5% or 1%?
A larger rate drop saves more each month, so you break even sooner. On a $300,000 loan, a 0.5% drop (6.5% to 6.0%) saves about $97 a month; a full 1% drop (6.5% to 5.5%) saves about $190 a month and roughly halves the break-even time for the same fees. Use the calculator above and change the new rate to model any drop.
Can a no-closing-cost refinance break even?
A "no closing cost" refinance rolls the fees into the loan or a higher rate instead of charging them up front. Your break-even is faster in calendar terms because there is no cash to recover — but you pay for it through a higher balance or a higher rate every month. Compare the two side by side with your lender’s real numbers before choosing.