Calculate refinancing savings, break-even point, and monthly payment changes. Compare your current mortgage with potential refinancing options.
Include appraisal fees, closing costs, origination fees, and other refinancing expenses
Our refinance calculator shows whether switching to a new home loan could save you money. Enter your current loan balance, rate, and term; the remaining term; the new loan rate and term; and any refinance costs. You get monthly payment savings, total interest savings, break-even time, and net savings after costs.
The calculator compares your current monthly repayment and total interest over the remaining term with a new loan at the rate and term you enter. It works out the monthly saving, total interest saved, and how many months it takes to recover refinance costs (break-even). Net savings is total savings minus upfront costs—the key number to see if refinancing is worthwhile.
Enter your current loan balance, current interest rate and original term, and remaining term in years. Then enter the new interest rate and new term you are considering, and all refinance costs (application fees, valuation, discharge fees, etc.). Click Calculate Refinance Savings. Use the break-even result to see how long you need to keep the new loan for savings to outweigh costs. If you might sell or refinance again soon, a long break-even can make refinancing less attractive.
Monthly savings is the drop in your repayment. Break-even (months) is how long until those savings have paid back the refinance costs. Net savings is total interest saved minus upfront costs. Generally, refinancing is worth it if net savings is positive and you expect to keep the loan past break-even. For more comparisons, use our Mortgage Calculator for repayments or our Loan Comparison Calculator to compare two loans side by side.
Generally, a break-even point of 2-3 years or less is considered good for refinancing. If you plan to stay in your home longer than the break-even period, refinancing typically makes financial sense. Consider your future plans and how long you expect to keep the loan.
If you're close to paying off your loan, refinancing may not make sense due to the upfront costs and the fact that you'll be paying interest on a new loan term. Consider the total interest you'll pay over the remaining term vs. the new loan term.
Yes, cash-out refinancing allows you to borrow more than your current balance and receive the difference in cash. However, this increases your loan amount and monthly payments. Use this calculator with your new loan amount to see the impact on your payments.
There's no legal limit on how often you can refinance, but frequent refinancing can be expensive due to closing costs. Most lenders require you to wait at least 6 months between refinances. Consider the costs and benefits carefully before refinancing multiple times.
Refinancing may not be worth it if your break-even period is longer than you plan to keep the loan, if you are close to paying off the loan, or if upfront costs wipe out most of the interest savings. Also consider non-financial factors: exit fees on your current loan, lost features (e.g. offset), or a much longer new term that could mean paying more interest over the full life of the loan. Use this calculator to check net savings and break-even before deciding.