The Break-Even Analysis is a built-in feature within refinance loan comparisons that calculates the number of months it takes for a borrower's monthly savings to offset their closing costs. Instead of presenting raw numbers and leaving clients to do the math on their own, Deal Details handles the calculation automatically and displays it in a clear, client-ready format. Use this tool any time you are comparing a borrower's existing loan against one or more refinance options.
Before You Start
Requirement | Details |
Existing Scenario | An existing loan scenario must already be created with the borrower's current loan details (rate, remaining balance, remaining term) |
New Scenarios | At least one new refinance scenario must be built to compare against the existing loan |
Loan Comparison | Your scenarios should already be placed into a loan comparison so the break-even section can generate |
Step-by-Step: Reviewing the Break-Even Analysis
1. Open Your Loan Comparison
Navigate to the loan comparison you have already built for your refinance client.
Confirm that your existing loan scenario and your new refinance scenarios are loaded in the comparison view.
At the top of the comparison, verify the standard scenario metrics are displaying: total monthly payment, monthly payment difference, points, estimated closing costs, and cash to close.
2. Locate the Break-Even Analysis Section
Scroll to the bottom of the loan comparison. The break-even analysis is positioned below the standard scenario metrics.
If the section is not visible, check that you have not hidden it using the show/hide toggle (see Step 4 below).
3. Understand the Break-Even Metrics
The analysis displays a detailed comparison between your borrower's existing loan and each new refinance option. Here is what each line means:
Metric | What It Shows |
Remaining Term | How many months are left on the existing loan (e.g., 322 payments remaining out of the original 360) |
Remaining Principal Balance | The current outstanding balance on the existing loan |
New Loan Term | The full term of the proposed refinance (e.g., 360 payments for a new 30-year fixed) |
Net Closing Cost | The total closing costs for each refinance option, including any points paid |
Next Principal Payment (Existing) | The principal portion of the borrower's next payment on their current loan |
First Principal Payment (New) | The principal portion of the first payment on the proposed refinance loan |
Amortization Gain | The difference in principal payment between the new loan and the existing loan, showing how much more equity the borrower builds per month at the new rate |
Monthly Payment Difference | The reduction in total monthly payment between the existing loan and the new option |
Total Monthly Benefit | The combined value of the monthly payment savings plus the amortization gain |
Break-Even (Months) | Net closing cost divided by total monthly benefit, giving the number of months until the refinance pays for itself |
⚠️ Important: The break-even calculation factors in both the payment savings and the amortization gain. This gives a more complete picture than simply dividing closing costs by payment difference alone. Make sure your clients understand they are benefiting from both the lower payment and the improved equity position.
4. Toggle the Break-Even Display
You can hide or show the break-even analysis section from the comparison view.
You also have the option to display it in condensed or expanded format:
Display Mode | What the Client Sees |
Hidden | Break-even section is not visible in the comparison or to the client |
Condensed | Shows only the total monthly benefit, closing cost, and break-even months |
Expanded | Shows the full detail including remaining term, principal payments, amortization gain, and all supporting math |
💡 Tip: When a client hovers over (or taps on) the break-even number, Deal Details displays the underlying formula so they can see exactly how the number was calculated.
Sharing the Break-Even Analysis with Clients
PDF Export
When you generate a PDF of your loan comparison, the break-even analysis is automatically included in the document.
The PDF reflects whatever display mode you have selected (condensed or expanded). If you hid the section, it will not appear in the PDF.
Client Portal View
When your client logs into their account and opens the scenario you shared, they see the same break-even analysis you configured.
If you showed it in condensed format, they see condensed. If expanded, they see expanded. If hidden, they do not see it at all.
⚠️ Important: Whatever display settings you choose in your comparison are exactly what your client will see in their portal and in the PDF. Always preview your settings before sending.
Quick Reference
Create Existing Scenario → Build New Refinance Scenarios → Open Loan Comparison → Scroll to Break-Even Section → Choose Display Mode (Hidden / Condensed / Expanded) → Export PDF or Share to Client Portal
Tips for Success
Use expanded view for detail-oriented clients—the full breakdown with amortization gain and principal payment comparisons helps analytical borrowers feel confident in the numbers.
Use condensed view for quick conversations—when a client just needs to know the bottom line, condensed mode keeps the presentation clean and focused.
Highlight the total monthly benefit, not just payment savings—many borrowers only think about the monthly payment difference. Pointing out the amortization gain shows additional value they might overlook.
Frame break-even in practical terms—instead of saying "22.2 months," say something like "you recoup your closing costs in under two years." Clients respond better to plain language.
Always preview before sharing—double-check your display mode and confirm the comparison looks the way you want it to before generating a PDF or sending the client portal link.