Refinance Savings Calculator

See how much you could save per year by switching to a lower rate.

Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited

📋 Your Current Loan

Current loan balance *

Current rate (% p.a.)

Remaining term (years)

🎯 New Loan

New rate (% p.a.)

Switching costs (discharge, legal, etc.)

Annual Saving

Per year by switching

Current monthly repayment$0

New monthly repayment$0

Monthly saving$0

Total interest saved over term$0

Switching costs$0

Break-even point0 months

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Estimate only. Actual rates depend on LVR, income, and lender policy. Lend & Loan ACL 511092.

How this calculator works

The calculator computes the monthly repayment on your current balance at both your current rate and the proposed new rate, using the standard amortisation (annuity) formula with monthly compounding. Both loans are compared over the same remaining term, so the saving reflects the rate difference alone rather than a stretched loan term.

The monthly saving is the difference between the two repayments, the annual saving is that figure multiplied by 12, and total interest saved is the difference between total repayments over the remaining term. The break-even point divides your switching costs by the monthly saving and rounds up, showing how many months it takes for the savings to cover the cost of moving.

Key assumptions used by the calculator:

Both loans are principal and interest, amortised over the same remaining term.
Rates are assumed constant for the remaining term; future rate moves are not modelled.
Break-even months = switching costs divided by the monthly saving, rounded up.
Lender cashbacks, ongoing fee differences, offset benefits, and any Lenders Mortgage Insurance on the new loan are not included.
Default switching costs of $1,500 cover typical discharge, legal, and registration fees; your actual costs may differ.

This is a general estimate only, not credit advice or an offer. The rate you can actually refinance to depends on your LVR, income, and lender policy, and comparison rates should be considered alongside headline rates.

Refinancing FAQ

When is refinancing worth it?

As a rule of thumb, refinancing is usually worth investigating when you can cut your rate by 0.25% or more and plan to keep the loan past the break-even point. On a $600,000 balance, moving from 6.8% to 6.0% over 25 years saves roughly $300 per month, so typical switching costs of $1,000 to $2,000 are recovered within months. The smaller the rate gap or the balance, the longer the payback.

What does it cost to refinance?

Typical costs include a discharge fee from your current lender (often $150 to $400), government mortgage registration and discharge fees, and sometimes application or valuation fees with the new lender, commonly totalling $1,000 to $2,000. If your LVR is above 80% you may also pay Lenders Mortgage Insurance again, which can outweigh the rate saving, and break costs can apply if you leave a fixed rate early.

Will refinancing restart my 30-year loan term?

Only if you choose a new 30-year term. Resetting the term lowers the monthly repayment but can increase total interest because you pay for longer. To bank the full saving, you can match the new loan to your remaining term, or keep repayments at the old amount so the rate cut goes straight into paying down principal faster. This calculator compares both loans over the same remaining term.