Free calculator

Refinancing Calculator

Find out whether switching your home loan is worth it. Calculate monthly savings, break-even point, and total interest saved over the life of the loan.

Updated April 2026·Free, no sign-up

Loan Details

Current Loan Balance

$50K$2M

Current Interest Rate (% p.a.)

New Interest Rate (% p.a.)

Remaining Loan Term (years)

Switching Costs

Exit / Discharge Fee

New Loan Establishment Fee

Legal / Settlement Fees

Lender's Mortgage Insurance(if LVR >80%)

Monthly Saving

$148

$2,701 → $2,553 per month

Rate Comparison

Current: 6.5%$2,701/mo

New: 5.9%$2,553/mo

Total Switching Costs$1,900

Break-Even Point13 months

Total Interest Saved (over loan life)$44,406

Is it worth it?

Likely worth refinancing, you'll recoup costs in under 2 years.

This calculator provides estimates only. Actual savings depend on your specific loan terms. Fees shown are indicative, confirm costs with your lender. Consider seeking independent financial advice before refinancing.

What to do next

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Step-by-step from deposit to settlement.

Should you refinance your home loan?

Refinancing can save tens of thousands of dollars over the life of a loan, but it comes with upfront costs that need to be weighed against your savings. The key metric is the break-even point: how many months until cumulative savings exceed switching costs.

When refinancing usually makes sense

Your break-even is under 24 months, you plan to keep the loan for several years, and the new lender has no hidden fees or restrictive conditions. A 0.5% rate cut on a $500,000 loan typically saves $150+ a month, with break-even inside 12 to 18 months even with switching costs.

When to be cautious

If you’re planning to sell or pay off the loan in the next few years, a long break-even period means you may never recoup the switching costs. Also consider whether a fixed-rate break fee applies to your current loan, those can be substantial on large loans during a falling-rate environment.

A quick alternative: ask first

Before going through the refinancing process, call your current lender and ask for a rate match. Many lenders will reduce your rate to retain your business, with zero cost or paperwork. The threat of refinancing is often enough; sometimes the savings are nearly as good without the disruption.

$50k+

Total interest saved over 30 years on a $500,000 loan from a 0.5% rate reduction. The annual saving compounds dramatically over the loan term.

Estimate, principal and interest

What to consider beyond the rate

Annual / monthly fees. A $0 ongoing-fee loan with a slightly higher rate often beats a low-rate loan with $400 a year in fees, especially on smaller loans.
Offset and redraw. Some no-frills loans drop the offset and redraw features. If you keep significant savings parked in offset, losing it can reduce your effective interest saving substantially.
Cashback offers. Lenders periodically offer $2,000 to $4,000 cashback for switching. Build it into the calculator and your break-even gets dramatically shorter.
Future flexibility. If you plan to upgrade, refinance again, or restructure within a few years, look for loans without exit fees and with flexible top-up policies.

Refinance every two to three years

The Australian lending market is competitive, and rates drift over time. Reviewing your loan every two to three years (and acting if a meaningful saving exists) is a habit worth keeping for the life of the loan. A broker can do this review for you, paid by the lender, not by you.

What this calculator doesn’t do

It doesn’t calculate fixed-rate break fees, ask your current lender.
It doesn’t apply LMI if your refinance pushes LVR above 80%.
It doesn’t value features (offset, redraw, package benefits) that may differ between loans.
It doesn’t factor in cashback offers, add manually if applicable.

For a complete refinancing analysis tailored to your situation, a mortgage broker can compare the actual policies and packages of 30+ lenders. We have a free expert match if you want help.

Want a real broker to run the numbers properly?

Calculator estimates are a starting point. A mortgage broker can compare 30+ lender policies and tell you what you’ll actually be approved for. Free for buyers, no commitment.

See how matching works

Common questions

What is the break-even point when refinancing?

The break-even point is the number of months it takes for your cumulative monthly savings to exceed the upfront costs of switching loans. For example, if you save $200 a month and it costs $3,600 to switch, your break-even is 18 months.

What costs are involved in refinancing?

Common refinancing costs include a discharge fee from your current lender (typically $150 to $500), an establishment or application fee with the new lender (typically $0 to $1,000), legal/settlement fees (typically $500 to $1,500), and potentially Lenders Mortgage Insurance if your LVR is above 80%.

What is an LVR and when does LMI apply?

LVR stands for Loan to Value Ratio, your loan balance divided by the property value. If your LVR exceeds 80%, most lenders will require Lenders Mortgage Insurance (LMI), which can cost thousands of dollars and significantly affect your refinancing break-even calculation.

How much can I save by refinancing?

The savings depend on the difference between your current and new interest rates, your remaining loan balance, and the term. Even a 0.5% rate reduction on a $500,000 loan can save over $150 a month and more than $50,000 over a 30-year term.

Can I negotiate a rate reduction without refinancing?

Yes, many borrowers succeed in getting a rate reduction simply by calling their lender and threatening to refinance. This costs nothing and should always be tried first, especially if your break-even calculation shows refinancing is marginal.

Should I refinance if I'm on a fixed rate?

Usually not, until close to the end of the fixed term. Breaking a fixed-rate loan early triggers a break fee that can be substantial (potentially tens of thousands of dollars on a large loan during a falling-rate environment). Calculate the break fee with your current lender and add it to refinancing costs before deciding. In a rising-rate environment, the break fee is often small or zero.