Refinance break-even calculator (2026)
How long does the lower repayment from a new lender need to run before it pays off the cost of switching? This page does the maths. Edit your scenario in the form below or via URL parameters.
Model result
Short break-evenThe entered costs take about 2 months to recover. This is an estimate, not a recommendation or lender assessment.
Monthly saving
$299
Annual saving
$3,590
Net upfront cost
$700
Break-even
2 mo
| Scenario | Rate | Monthly repayment | Total interest (full term) |
|---|---|---|---|
| Stay with current lender | 6.84% | $4,180 | $653,889 |
| Refinance | 6.04% | $3,880 | $564,148 |
| Difference | −0.80pp | −$299/mo | −$89,742 |
Net saving over time
These figures show the modelled repayment difference minus the entered upfront cost. They do not include future rate changes or unentered fees:
- After 5 years: $17,248
- After 10 years: $35,197
- Over the full 25-year term: $89,042
Check cashback conditions
A cashback can change the break-even result, but availability, payment timing and repayment conditions vary. Read the current offer terms and enter zero if the payment is not confirmed for the proposed loan.
What this calculator doesn't model
- Fixed-rate break costs. If you're mid-fix, the bank charges a break cost calculated on the present value of their lost margin. This can run into tens of thousands. Use the bank's quote, not this calculator's number.
- Loan term reset. If your new loan resets to 30 years (a freshly-originated loan typically does), monthly repayments drop further but total interest paid over the longer term may be higher. Match the new term to your remaining term to compare apples-to-apples.
- LMI re-crystallisation. If your current LVR is above 80%, a new lender will charge fresh LMI on the new loan. This can wipe out years of break-even progress. Wait until your LVR is below 80% (via repayment or appreciation) before refinancing if at all possible.
- Offset balance impact. If you're moving from a loan with a 100% offset to one without, the effective rate gap can be smaller than the headline number suggests.
Use the home loan refinancing checklist to collect quotes, documents and settlement steps before applying.
Where to find current rates
See our home-loan rates page for the latest rates reviewed by the site. Confirm any rate, fee and eligibility condition directly with the lender before entering it here.
Asking the current lender for a written retention offer can provide another like-for-like option with fewer switching steps. Our guide to comparing home loans walks through the negotiation playbook.
FAQ