When you pay closing costs in cash, a simple break-even asks: how many months of payment savings equal those costs?
Formula (cash costs)
Break-even months ≈ cash closing costs ÷ monthly payment savings
Sample
Costs $4,000.00 · savings about $322.25/mo → about 1 year (12 months) . Open sample
When break-even is n/a
- Closing costs rolled into the new principal
- No monthly payment savings (or a higher new payment)
Related
Frequently asked questions
What is refinance break-even?
How long monthly payment savings take to cover cash closing costs you paid to refinance—under a simple constant-savings model.
Sample break-even on $4,000 costs with the $300k path?
About 1 year (12 months) with monthly savings ~$322.25.
Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.