Disclaimer: This calculator provides estimates only and should not be considered financial or credit advice. Actual savings depend on your lender's fees, discharge costs, valuation fees and the loan product you choose. Always obtain a formal comparison from a licensed mortgage broker or credit licensee before refinancing. Evercend Pty Limited does not hold an Australian Credit Licence and does not provide any credit or credit-related services.
Refinance savings calculator inputs and results
Your current loan
New loan details
Leave blank to keep the same remaining term.
Discharge, application, valuation and legal fees.
Enter your loan details to begin
Fill in your current loan balance, interest rate, term and the new rate on the left to see your savings instantly.
How refinance savings work
Refinancing means switching your home loan, either to a new lender or to a different loan with your current lender. People often refinance to get a lower interest rate, change features, or access equity.
A lower rate can reduce your repayments, but switching has upfront costs, and the saving is only real once those costs are recovered. This calculator estimates your monthly saving, the point where the saving covers the switching costs, and the net saving over time. It is a model, not a quote or an approval.
How to use this calculator
Enter your current loan
Add the balance, interest rate and years remaining.
Enter the new loan
Add the new interest rate you are comparing against.
Add the switching costs
Include fees such as discharge, application and any break fee.
Read the result
The calculator shows your monthly saving, break-even point and net saving.
How this calculator works
The calculator compares the repayments on your current loan with the repayments on the new loan over the same remaining term. The difference is your monthly saving. It then works out how many months of saving it takes to recover the switching costs, which is your break-even point.
Assumptions used
Both loans are compared over the same remaining term, so the saving comes from the lower rate rather than a longer loan. Switching costs are treated as an upfront amount to be recovered from the monthly saving. The interest rate is assumed to stay the same for the life of each loan. The estimate does not include lenders mortgage insurance if your equity is below 20 percent, changes in the cost of living, or a lender's approval decision. Lenders calculate interest in slightly different ways, so your actual figures may differ.
Worked example
A borrower has a $500,000 loan at 6.5% with 25 years remaining. They switch to a new loan at 6.0% over the same term, with switching costs of about $1,500.
The monthly repayment falls by about $155, from about $3,376 to about $3,221. At that saving, the $1,500 in switching costs is recovered in about 10 months. After that, the lower rate is a net saving.
The larger the rate difference and the longer you keep the loan, the more you save. A break fee on a fixed loan, or paying lenders mortgage insurance again, can reduce or remove the benefit.
What changes your refinance saving
Several things change how much you save by refinancing and how long it takes to break even. The main ones are:
Interest rate difference
The gap between your current rate and the new rate drives the saving. Even a small difference adds up over the remaining term.
Switching costs
Costs such as a discharge fee, a new application or establishment fee, and government registration fees reduce the benefit until they are recovered.
Break fee on fixed loans
If you are on a fixed rate, leaving early can trigger a break fee. This can be substantial and sometimes removes the benefit of switching.
Remaining loan term
Comparing over the same remaining term shows the true saving from the rate. Extending the term lowers repayments but can increase the total interest you pay.
Lenders mortgage insurance
If your equity is below 20 percent, you may have to pay lenders mortgage insurance again, because it does not transfer between lenders.
Comparison rate and features
A comparison rate includes most fees, which helps compare the true cost. Features such as an offset account can also affect the value of a loan.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Break-even point | Switching costs divided by the monthly saving | ASIC MoneySmart |
| Switching costs | Discharge fee, application or establishment fee, break fee on fixed loans, valuation | ASIC MoneySmart |
| Comparison rate | Interest plus most fees, as a single figure | ASIC MoneySmart glossary |
| Cash rate context | Set by the RBA and flows through to home loan rates | Reserve Bank of Australia |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
Refinancing means replacing your current home loan with a new one, either with a new lender or with your current lender on a different loan. People often do it to get a lower rate, change features, or access equity.
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Sources
- •ASIC MoneySmart, switching home loans
- •ASIC MoneySmart, mortgage switching calculator
- •Reserve Bank of Australia, cash rate and interest rates
Content reviewed and figures checked against the sources above on 10 August 2026.