Both payments use standard amortization on your current balance. Break-even months = closing costs ÷ monthly savings. The lifetime figure compares total remaining payments now vs. total new payments plus closing costs — a longer term can save monthly and still cost more overall.

What data does it use?

Standard amortization mathematics (public domain).

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Refinance Break-Even: how it works

Compares your current principal & interest payment with a refinanced payment, then divides the closing costs by the monthly savings to find the break-even point — with an honest lifetime-cost comparison alongside.

Step by step

Both payments use standard amortization on your current balance.
Break-even months = closing costs ÷ monthly savings.
The lifetime figure compares total remaining payments now vs. total new payments plus closing costs — a longer term can save monthly and still cost more overall.

The math

Monthly P&I = L·r/(1−(1+r)^−n) (public-domain amortization).

Sources

Standard amortization mathematics (public domain).