Refinance Decision Analysis

Mortgage Break-Even Analysis

You can't compare two loans on monthly payment alone. This tool pays both the same amount each month, tracks the equity each one builds, and pinpoints the single moment that decides the better deal — the break-even point, measured in time.

Enter term in

Mortgage A A

$
%
years
$

Mortgage B B

$
%
years
$

Break-even point

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Payment — A
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Payment — B
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Common payment
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Extra to principal / mo
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Prefer numbers? View amortization schedule →

Net position of Mortgage B relative to Mortgage A

Below the line, A keeps you ahead. Above it, B does. The crossing is your break-even.

Advantage of B over A B ahead A ahead
Method & assumptions

Both options are funded with an identical monthly outflow, P = max(payment A, payment B), so the cheaper loan receives the surplus as additional principal. Each option commits the same total cash, fees + P × months, against the same home — so the only figure that separates them at any month is:

Advantage(B over A) = (Balance A − Balance B) − (Fees B − Fees A)

The higher-fee, lower-rate loan begins behind by its extra fees and gains ground as it retires principal faster. Break-even is the month this curve crosses zero. When a loan is paid off early, its freed payment is set aside at 0% — a deliberately conservative assumption — so both options continue to commit equal cash. Property taxes, insurance, PMI, and the time value of the upfront fee are not modeled.