How the Refinance Calculator works
Refinancing is worth it when the monthly savings recover the closing costs before you sell or move. Run your current loan and the new offer separately, subtract the payments, and divide closing costs by that difference to get the break-even month.
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (APR ÷ 12) and n is the number of monthly payments.