Loan review
Refinance savings calculator
Compare your current loan with a new rate scenario and estimate repayment, interest, and break-even differences.
Loan review
Refinance savings
Compare your current repayment with a new-rate scenario and estimated switch costs.
Short explanation
How to use a refinance savings calculator
A refinance estimate should compare the repayment, interest, switch costs, features, and break-even point. A lower rate is useful only if the whole structure improves.
How refinance savings work
Refinance savings compare the current loan position with a new loan scenario. The key numbers are monthly repayment difference, total interest difference, switching costs, and break-even point.
The result is a starting estimate, not a recommendation to switch.
Switching costs and break-even
Switching can involve discharge fees, new lender fees, valuation fees, government fees, and possible fixed-rate break costs. The break-even estimate shows how long savings may take to recover those costs.
If you plan to sell or refinance again soon, break-even timing can matter as much as the rate.
Compare features, not just rate
Offset, redraw, split loans, extra repayment limits, package fees, cashback, fixed-rate terms, and loan purpose can all affect whether a refinance improves the total position.
A broker can compare the structure as well as the headline rate.
Want the full explanation? Read: Documents needed to refinance
Estimate basisHow this refinance savings estimate works
The refinance calculator is built around the question MoneySmart raises: do the benefits of switching outweigh the costs?
- The calculator compares the current loan scenario with a new-rate scenario using entered loan balance, rate, term, and switching costs.
- It estimates repayment difference, interest difference, switching-cost recovery, and estimated break-even timing.
- It does not confirm lender eligibility, valuation, fixed-rate break costs, cashback rules, product features, or settlement charges.
- A broker should compare staying, repricing, refixing, restructuring, or switching before a borrower relies on the result.
Frequently asked questions
Refinance savings calculator FAQ
How do I know if refinancing is worth it?
Compare repayment savings, interest difference, switch costs, break-even time, loan features, and whether the new loan still fits your goals.
What costs should I include?
Include discharge fees, application or package fees, valuation fees, government fees, legal costs, and any fixed-rate break cost that may apply.
What is a break-even point?
The break-even point is the estimated time it takes for monthly savings to recover the upfront switching costs.
Can cashback make refinancing better?
Cashback can help, but it should be weighed against rate, fees, features, eligibility, loan size, and how long you plan to keep the loan.
Should I extend the loan term when refinancing?
Extending the term can lower repayments but may increase total interest over time. Compare both cash flow and total cost.
Broker check
A calculator gives you a starting number.
What a broker checks that this calculator cannot
Treat the saving as a scenario. A broker still needs to check discharge fees, break-even point, loan-term reset, cashback conditions, documents and lender policy before you rely on it.
- True switch costDischarge fees, application costs, valuation fees, break costs, and government charges can change the result.
- Loan featuresA lower rate may not help if the new loan loses offset, redraw, repayment flexibility, or structure that matters.
- Policy and valuationThe new lender still needs to accept the borrower, property, income, LVR, documents, and valuation.
This calculator provides a general estimate only. It is not approval, not credit advice, and not a loan recommendation. Actual refinance outcomes depend on lender policy, valuation, income, expenses, discharge fees, application fees, break costs, cashback rules, product features, documents, and verification.