Refinance break-even calculator
A lower rate only helps once it has paid back the cost of switching. Enter your balance, the old and new rates, the years remaining and your switch costs to see the monthly saving and the break-even point.
Refinance break-even calculator
SavingDischarge + application + valuation
8 months to break even
- Current monthly repayment
- $3,376.04
- New monthly repayment
- $3,221.51
- Monthly saving
- $154.53
- Net position after 5 years
- $8,071.80
After 8 months the monthly saving covers the $1,200 switch cost; beyond that you are ahead. This ignores any change to your loan term or features.
RepaymentsCost at any rate and termBorrowing powerIf you are also topping upStamp dutyFor your next purchase
Common questions
- When is refinancing worth it?
- When the monthly saving from a lower rate recovers the switch costs quickly enough. On the example (6.5% to 6% on a $500,000 balance), the saving is about $154.53 a month and the $1,200 switch cost is recovered in 8 months.
- What counts as switch costs?
- Typically a discharge fee on the old loan, plus application, valuation and settlement fees on the new one. Some lenders offer cashback that offsets these — include it as a negative cost.
- What does this ignore?
- It compares repayments at the same remaining term. It does not model resetting to a longer term (which lowers repayments but adds interest), offset accounts, or fee differences beyond the switch cost you enter.