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Mortgage Refinance Calculator
Comparing refinance pricing from another lender? Enter the terms you've been quoted below to see your new payment, monthly savings, and how long it takes to break even on closing costs.
Quick answer
The Kismet Kapital refinance calculator computes a new fully amortizing monthly payment from your balance, quoted rate and term, subtracts it from your current payment to show monthly savings, and divides closing costs by that saving to give a break-even period in months. A refinance generally makes sense when you expect to hold the property well beyond the break-even point.
Current Loan
New Loan Terms
New Monthly Payment
$1,692.36
Monthly Savings
$227.64
Break-Even
24 months
You'll recoup your closing costs in approximately 24 months.
This is an estimate for planning purposes only and does not constitute a loan quote or commitment. Actual terms may vary.
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How to read your results
Break-even under 24 months
Closing costs are recovered in under two years. For an owner planning to hold the property or keep the loan in place for several more years, this is typically a clear economic win, assuming the new loan carries no prepayment penalty that offsets the saving.
Break-even of 24 to 48 months
The refinance works only if the hold period is genuinely longer than the break-even window. Compare it honestly against your exit plan: if a sale or another recapitalization is likely inside four years, the closing costs may never be earned back.
Break-even beyond 48 months, or none at all
Either the rate improvement is too small relative to closing costs, or the new payment is not lower at all. A refinance can still make sense for non-payment reasons — pulling out equity, removing recourse, extending maturity, or replacing a floating rate with a fixed one — but it is not a payment-savings play.
A lower rate does not always mean refinance
Resetting a loan to a fresh 30-year term lowers the payment while extending the interest you pay for years longer. Also check prepayment penalties, defeasance costs on existing CMBS debt, and whether the quoted rate is locked. Monthly savings is only one input to the decision.
Key facts
Refinance break-even is calculated as total closing costs divided by monthly payment savings.
A break-even period under 24 months is generally considered attractive for an owner planning a longer hold.
If the new payment is equal to or higher than the current payment, there is no break-even because closing costs are never recovered through monthly savings.
The new monthly payment is a fully amortizing payment based on the balance, quoted rate and term you enter.
Extending the term lowers the monthly payment but increases total interest paid over the life of the loan.
Frequently asked questions
How is refinance break-even calculated?
Break-even equals total closing costs divided by the monthly payment savings. If a refinance costs $5,500 to close and saves $230 per month, you break even in approximately 24 months.
What counts as a good break-even period?
A break-even period under 24 months is generally considered strong, and anything under your realistic remaining hold period is workable. If you expect to sell or recapitalize before break-even, the closing costs outweigh the savings.
Does a lower rate always mean I should refinance?
No. Resetting to a new 30-year term can lower the payment while increasing total interest paid, and prepayment penalties or defeasance costs on the existing loan can erase the benefit. Compare break-even against your hold period and total interest, not the rate alone.
What closing costs should I include?
Include origination or points, appraisal, title and escrow, legal, survey, and recording fees. Leave out escrow deposits for taxes and insurance, since those are prepaid balances rather than costs.
Why does the calculator show no break-even?
That means the new payment is equal to or higher than your current payment, so there are no monthly savings to recover the closing costs. This usually happens when the quoted rate is not materially lower or the new term is shorter than the remaining term.
Is my information saved?
No. The calculator runs entirely in your browser and nothing is stored unless you choose to email yourself the comparison, which saves the scenario so our team can follow up.
Related definitions
- Defeasance
Defeasance is a prepayment method in which a borrower substitutes government securities for the property as loan collateral instead of paying the loan off in cash.
- Loan-to-Value (LTV)
Loan-to-value (LTV) is the ratio of a loan amount to the appraised value of the property securing it, expressed as a percentage.
- Debt Service Coverage Ratio (DSCR)
Debt service coverage ratio (DSCR) is net operating income divided by annual debt service, showing how many times income covers the loan payment.