Mortgage Refinance Calculator
Compare your current home loan against a new lender's rate, factor in switching costs and find the exact break-even month for refinancing your mortgage.
Your results
Calculation breakdown
- Repayment difference
- $2,700.83 − $2,528.53 = $172.30 per period
- Break-even
- $1,200.00 ÷ $172.30/month = 7 months
Assumptions
- Both loans are assumed to be standard principal and interest, reducing-balance loans.
- Interest rates are assumed to stay constant for the full comparison period.
- Switching costs are a one-off amount paid at refinancing, e.g. discharge and application fees.
- Current remaining interest is calculated over the loan's stated remaining term, not from origination.
How this calculator works
Refinancing only pays off when the repayment saving outruns the switching costs. This calculator compares repayments and remaining interest on both loans, then divides your costs by the monthly saving to find the break-even point.
Frequently asked questions
What costs should I include?
Discharge fees, new application and settlement fees, valuation and any government registration charges.
Why did my break-even not appear?
If the new repayment is the same or higher there is no monthly saving, so there is no financial break-even.
Does extending the term save money?
It lowers repayments but usually increases total interest paid over the life of the loan.
Results are estimates only and are not financial, tax, legal or credit advice.