Refinance Savings Calculator
Estimate how much refinancing to a lower home loan rate could save each month, how long it takes to recover the costs, and the total saving over the loan.
EmbedDischarge fee, new loan application fee, etc.
How to Use This Refinance Savings Calculator
This refinance calculator helps show whether switching your home loan to a lower interest rate is likely to save meaningful money after accounting for refinancing costs. It is designed for borrowers who want more than just a lower headline rate and need to understand the break-even point as well.
Enter your current loan balance, your current interest rate, the new rate you are considering, the years remaining on the loan, and the estimated cost of refinancing. The calculator then estimates your old repayment, new repayment, monthly saving, total saving across the remaining loan term, and how long it may take to recover the upfront costs.
This is useful because refinancing is not free. A slightly lower rate can still be a poor decision if the fees are high and you may move, sell, or refinance again before the break-even point is reached. On the other hand, even a modest reduction can produce substantial savings on a large balance.
Best Way to Read the Result
The break-even point is often the key number. If you are unlikely to stay in the loan long enough to recover the costs, the refinance may be less attractive even if the new rate looks good.
What Else to Consider
This calculator does not model redraw features, offset accounts, ongoing annual fees, fixed-rate break costs, or service quality. Those can matter just as much as the headline rate.
Formula
Refinance value depends on the new repayment, upfront refinancing costs, and how long it takes the monthly saving to recover those costsFrequently Asked Questions
What costs are involved in refinancing?
Common costs can include discharge fees, application fees, valuation costs, settlement or legal fees, and sometimes break costs on fixed loans. That is why a refinance should be judged on net benefit, not just the new rate.
How much rate reduction makes refinancing worthwhile?
There is no universal threshold because balance size and fees matter. A small rate reduction on a large balance can still be meaningful, while a larger reduction on a small balance may matter less if costs are high.
How often should I review my home loan rate?
Many borrowers review it periodically rather than leaving it unchanged for years. Even if you do not refinance immediately, checking your rate can help you negotiate with your current lender.
Should I refinance for features, not just rate?
Sometimes yes. A loan with an offset account, better flexibility, or lower ongoing fees may still be worth considering even if the headline rate is not the absolute lowest available.
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