CalculatorPlus

Finance & property Australia

Refinance Calculator Australia

Refinancing means moving your home loan to a cheaper rate, but fees and the time it takes to recover them decide whether it pays. This calculator compares your repayment today with the new one and finds the month you break even after switching costs and any cashback.

Free, no signup Runs in your browser

Monthly saving

—

Repayment now

—

Repayment after refinancing

—

Switching costs less cashback

—

Break-even

—

Saving over the years you keep it

—

Interest saved over the full term

—

The comparison

    Is it worth refinancing my home loan?

    It is worth it when the repayment saving over the time you will keep the loan is larger than the costs of switching. Moving $550,000 from 6.4% to 5.9% over 27 years saves about $172.85 a month, and with $900 of fees less a $2,000 cashback you are ahead from the first month.

    What it costs to switch

    Typical costs are a discharge fee from the old lender, an application or settlement fee at the new one, and sometimes valuation and legal costs. Many lenders now offer cashback or waive fees to win refinancers, which can make switching close to free.

    If you have a fixed-rate loan, break costs can be thousands of dollars, so check before switching early. If the new loan has a fee for the first few years, include it in the costs.

    Look beyond the headline rate

    Compare the comparison rate, which includes most fees, and check the features you use: offset account, redraw, extra-repayment limits and package fees. A cheaper rate can be outweighed by a package fee.

    To see the effect of an offset, use the offset account calculator.

    How this is calculated

    The rule, step by step, so you can check any figure by hand.

    • repayment = loan × r ÷ (1 − (1 + r)^−n) for the current and the new rate over the same term
    • monthly saving = repayment now − repayment after refinancing
    • break-even = (switching costs − cashback) ÷ monthly saving
    • saving over the years you keep it = monthly saving × months − net switching costs

    Break-even is the figure that matters, not the headline rate. A half-point cut on a $550,000 loan saves about $173 a month, so $900 in costs is recovered in about five months. On a $200,000 loan the same cut saves about $63 a month and takes longer to pay back.

    The comparison keeps the term the same. Taking a fresh 30-year term lowers the repayment more but extends the debt, which costs more interest overall, so check the term you are being offered.

    A worked example

    A $550,000 loan at 6.4% moved to 5.9%, 27 years remaining, $900 costs and a $2,000 cashback, kept for 10 years.

    1. Repayment now$3,570.52
    2. Repayment at the new rate$3,397.66
    3. Monthly saving$172.85
    4. Net switching cost, $900 − $2,000-$1,100.00
    5. Saving over 10 years$21,842

    About $172.85 a month, and $21,842 over 10 years after costs.

    A negative net cost means the cashback is larger than the fees.

    Negotiate first

    Your existing lender may match a competitor's rate if you ask, which avoids switching costs altogether. Having a quote from another lender in hand helps, and the call usually takes minutes.

    What it leaves out

    Rate changes after a fixed or introductory period, tax on investment loans and mortgage insurance are not modelled. Re-run the calculation with the rate you expect after any introductory period ends.

    What this calculator does not do

    • Same term assumed for both loans
    • No fixed-rate break costs
    • No mortgage insurance or valuation costs unless you add them
    • Constant rates

    Common questions

    How do I know if refinancing is worth it?

    Compare the monthly saving with the switching costs. If you recover the costs within the time you expect to keep the loan, it usually is.

    What does it cost to refinance?

    Usually a few hundred dollars in discharge and application fees, though many lenders offer cashback that can cover them.

    Can my current lender match a better rate?

    Often, if you ask. It is worth calling before switching.

    Does refinancing hurt my credit?

    A new application leaves an enquiry on your credit file, which has a small, short-lived effect.

    Should I extend the loan term?

    That lowers the repayment but increases total interest. Keep the term the same to compare fairly.

    Where these numbers come from

    Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.

    Related AU calculators

    Finance & property

    Mortgage

    Repayments, total interest, and what extra repayments actually save.

    Open calculator     Finance & property

    Offset account

    Interest saved by holding cash in a mortgage offset account.

    Open calculator     Finance & property

    Extra repayments

    Interest and years saved by paying more than the minimum.

    Open calculator     Finance & property

    Borrowing power

    Indicative home loan size from income, costs and the 3% buffer.

    Open calculator

    Australia · Finance & property

    More Australian finance calculators

    See all 34 calculators in this section