SettingsSettings for this calculationUS
What you still owe.
The redemption figure, not the original loan and not the property's value. Ask the lender for a redemption statement rather than reading the last annual summary — it includes interest to the day and any early repayment charge, and that charge is frequently larger than every other fee in this calculation put together. A remortgage inside a fixed period is usually decided by that one number.
The rate you are paying now.
The rate in force today, which is not the rate you fixed at if the fixed period has ended and the loan has reverted. Check the last statement: a loan sitting on a lender's variable rate is usually several points above the fix it came off, and comparing a new offer against the old fixed rate rather than the current one makes the saving look smaller than it is.
The rate on offer.
The rate itself, with the fees entered separately below — a low rate bought with a large arrangement fee and a high rate with none can cost the same, and separating them is the whole point of a break-even. Use the initial rate rather than the APRC, because the break-even happens inside the initial period or it does not happen at all.
Years left on the current mortgage.
Compare like with like: if the new deal runs longer than the years remaining, the lower payment partly reflects the longer term, not the better rate, and the break-even figure will flatter it.
Arrangement, valuation, legal fees, plus any exit charge.
Include the early repayment charge on the existing deal — it is often the largest single item and the one that decides the answer. A fee added to the new loan still counts here, and also accrues interest.
Break-even point
Needs your rates
This page does not assume a price. Enter yours and the answer appears here.
They open the calculator with your figures already in it
Refinance Break-Even Calculator — shown in imperial, US market. The link sets both, so the result they see is the one on your screen.
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How this was calculated
Formula source(s)
- Break-even months = total switching cost ÷ monthly payment saving. Standard consumer-finance comparison method.
- Fees vary widely by lender and market; all are user inputs here
Inputs used
- Outstanding balance
- 200000
- Current rate (%)
- New rate (%)
- Years remaining
- 22
- Total switching cost
- 3000
What this calculation does not cover
- Compares equal remaining terms. Extending the term lowers the payment without improving the rate, and this calculator will not separate the two effects for you.
- Ignores the interest cost of any fee rolled into the new loan.
Computed in your browser — nothing you enter is uploaded. Presented in US customary units and US trade terminology. Where a formula follows a published standard, that standard and its edition are cited beside it on this page; where none governs, the page says so. Local amendments override model codes — verify against the code in force where you build.
Sources checked 2026-09-06 · in the site-wide review of 2026-09-06 · v1.0.1
Regulatory standards & verification citations2
- Break-even months = total switching cost ÷ monthly payment saving. Standard consumer-finance comparison method.
- Fees vary widely by lender and market; all are user inputs here
Cite this page
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