The calculator determines the time it would take for the accumulated savings from the new loan to offset the costs incurred in refinancing. This "break-even point" signifies the period beyond which you would start experiencing actual financial benefits from the refinance as your savings exceed the expenses.

The calculator's output typically includes the months it takes to break even, the monthly savings, and a new monthly principal and interest payment compared to your old payment. This information helps you make an informed decision about whether refinancing is financially advantageous based on your intended duration of homeownership and your assessment of the benefits.

A mortgage refinance break-even calculator is a valuable tool for homeowners considering refinancing as it aids in evaluating the economic feasibility of the decision. It helps you understand whether the potential long-term savings will justify the upfront costs and, if so, how long you should stay in your home to fully reap the financial benefits of the refinancing process.