Thinking of refinancing? See your monthly saving, how long until you break even on switching costs, and whether it’s worth it over the life of your loan.
Your Current Loan
$
%
$
$
Your New Loan
$
%
Intro rate available
%
$
$
$
Monthly saving
+$248/mo
Break-even period
2mo
Total saving over loan
+$74,040
Cumulative cost comparison
Current loanNew loan (after switching costs)
Side by side
■ Keep current loan
Monthly repayment + fees
$3,758/mo
Total interest
$574,424
Total cost (interest + fees)
$1,127,424
■ Switch to new loan
Monthly repayment + fees
$3,510/mo
Total interest
$503,034
Total cost (interest + fees + switching)
$1,053,384
You'd save $74,040 over the life of the loan by switching, but it takes 2mo to recoup the $350 switching cost. If you plan to sell or refinance again before then, switching may not be worth it.
How this works: We calculate what you'd pay keeping your current loan versus switching to the new one, over the same remaining term. Switching costs (exit fee + upfront costs) are added to the new loan's total, and we track cumulative costs month by month to find the break-even point — when the new loan's total cost drops below the current loan's. An introductory rate, if entered, applies for the specified period before reverting to the standard new rate. Extra repayments are applied to the new loan and reduce interest. This is an estimate; actual costs and savings will depend on your lender's policies, LMI, and other factors not captured here.
Should I refinance my mortgage?
Refinancing can save you thousands — but only if you stay in the loan long enough to recoup the switching costs. The key number is the break-even period: how many months until your rate savings outweigh what you paid to switch. If you plan to sell or refinance again before that point, switching may cost you more than it saves.
What costs should I include?
Exit / break fee — some fixed-rate loans charge a break cost if you refinance early. Variable rate loans usually have no exit fee, but check with your lender.
Upfront costs on the new loan — application fee, valuation fee, legal / conveyancing costs. Typically $500–$2,000 combined.
Ongoing fees — annual or monthly account-keeping fees, which vary widely between lenders and can erode a rate saving over time.
Introductory (honeymoon) rates
Some lenders offer a discounted introductory rate for a set period (typically 12–24 months) before reverting to their standard variable rate. Enter both the intro rate and the period to see the true long-term cost after the honeymoon ends.
The chart explained
The cumulative cost chart shows what you would have paid in total over time on each loan. The point where the green line (new loan) crosses below the blue line (current loan) is your break-even. The shaded area to the right is where you come out ahead.
Assumptions & What's Not Included
This estimates the saving from refinancing to a new rate. To keep it clear, it assumes:
Principal & interest only — savings compare repayments and interest on your current vs new rate. It doesn't include switching costs unless you enter them.
Switching costs — discharge fees, new-loan application/establishment fees, valuation fees, and any fixed-rate break costs can offset the saving. Enter these where the tool allows; otherwise the saving shown is before switching costs.
Fixed rates for the full term — both the current and new rates are assumed constant. Variable rates will change the real outcome.
Monthly compounding & monthly repayments — interest is calculated monthly with one repayment per month, on the same basis for both scenarios.
Payment timing — repayments are treated as end-of-month, after interest accrues.
Debt consolidation — if you enter a new loan amount higher than your current balance (to roll in credit-card or personal debt), the figures reflect the larger loan. A higher repayment is expected; the real benefit is moving high-interest debt onto a lower mortgage rate. Compare the new repayment against your combined current debt repayments, not just the old mortgage.
A lender's comparison rate and a broker's break-cost quote give the most accurate switching picture. Use this as a first-pass estimate.
Worked example
You have $400,000 left on a loan at 6.5% over 25 years and consider switching to 5.8%, with a $600 exit fee and $1,500 of upfront costs.
Current loan
$400,000 @ 6.5%, 25 yrs
New rate
5.8%
Switching costs
$2,100
Monthly saving
~$173
Break-even
~12 months
Saving over remaining term
~$49,700
What it tells you: You’d save about $173 a month and recoup the $2,100 switching cost in roughly 12 months — after which you’re ahead, to the tune of nearly $50,000 over the remaining term. If you planned to sell or refinance again within a year, switching wouldn’t be worth it.
Frequently Asked Questions
How do I know if refinancing is worth it?
Calculate your break-even period — divide your total switching costs by your monthly saving. If you plan to keep the loan longer than that, switching is likely worth it. This calculator does the maths automatically and shows a chart of cumulative costs so you can see exactly when you come out ahead.
What is a break-even period for refinancing?
The break-even period is the number of months until your rate savings equal the upfront costs of switching, such as application fees, legal costs and any exit fees. If your break-even is 14 months and you plan to stay in the loan for at least that long, switching makes financial sense.
What fees do I need to factor in when refinancing?
The main costs are any exit or break fee on your current loan, and the upfront costs on the new loan including the application fee, valuation fee and legal costs. Ongoing fees on both loans also affect the comparison, as a lower rate with high monthly fees can be less competitive than it appears.
Is this calculator private? Do you store my data?
Yes, it is completely private. Every calculation runs locally in your browser, so the figures you enter are never sent to a server, never stored, and never shared. There are no accounts and no sign-up.
CalcEezy is a free collection of financial calculators built to help you make quick, informed decisions about loans, savings, and investments.
Every calculation runs entirely in your browser using standard financial formulas — the same ones used in spreadsheet software. Nothing is sent to a server, so your numbers stay completely private and the tools even work offline.
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