Refinance calculator — see how much you could save

How to use this calculator

Enter your current loan balance, interest rate, and remaining term in the left column. Then enter the details of the loan you are considering switching to — the new rate, any setup fees, and any cashback offered. The calculator instantly shows your monthly saving, annual saving, break-even month, and total interest saved over the remaining loan term.

When does refinancing make sense?

Illustrative example, not a current offer: keep a $500,000 balance and 25-year remaining term. At a constant 6.39%, repayment is $3,341.75 a month; at 5.89%, it is $3,187.97. The difference is $153.78a month and $46,133.57 across 300 payments before switching costs. With $2,000 upfront switching costs, net modelled term savings are $44,133.57. This example excludes offset, cashback, LMI and break costs and assumes rates never change.

Under those assumptions, simple cash-flow break-even is 14 months, rounding $2,000 divided by the monthly saving up to a whole month. This is not a rule that refinancing is worthwhile after a particular period. Compare how long you expect to keep the loan, product features, switching costs and total interest at the same remaining term. A longer new term can reduce repayments while increasing total cost.

Fixed rate loans — the break cost risk

Breaking a fixed rate home loan before the fixed term expires may incur a break cost — sometimes called an economic cost or early repayment cost. This is calculated by your lender based on the difference between your contracted fixed rate and current wholesale funding rates for the remaining term.

In a falling rate environment — when the RBA is cutting rates — break costs can be very high, because your lender is receiving a higher fixed rate from you than they could get from reinvesting those funds at current market rates. In a rising rate environment, break costs may be zero or minimal. Never estimate your break cost — always request an exact quote from your lender before making any refinancing decision on a fixed rate loan.

LMI and refinancing

Do not assume existing LMI cover transfers to another lender. If your current LVR (loan balance divided by property value) is above 80%, refinancing to a new lender may require a new LMI premium. Obtain a written quote and include it in switching costs; ask the existing lender about a possible partial refund.

Check your current LVR before exploring refinancing. If you are close to 80% LVR, it may be worth making extra repayments to cross the 80% threshold before refinancing. A lower LVR commonly avoids LMI, but only the lender can confirm its valuation, product requirements and any waiver.

Cashback offers — read the fine print

If a written offer includes cashback, confirm eligibility, payment timing and any repayment or clawback conditions. Compare the net switching cost and ongoing loan cost; a promotional payment does not establish that the loan is cheaper. Enter only a confirmed amount and check the offer terms before relying on it.

How often should you review your home loan?

Review your rate, fees and features when your circumstances or loan terms change, or when comparing a specific alternative quote. Ask your existing lender what it can offer, then compare the full switching cost with staying. A cash-rate change does not determine the rate or approval another lender will offer you.

Refinancing can be harder if your income, expenses, property valuation or credit position has changed. LVR is one factor, alongside serviceability and product rules. Ask about options with your existing lender and obtain an individual assessment; extra repayments or a particular LVR do not guarantee refinancing approval.

Keep the switching-cost assumptions

Use the Refinance Break-Even Planner to separate upfront costs, monthly cash flow and lifetime cost. Estimated differences depend on the rates, fees and terms you enter.

How much can I save by refinancing?

Compare repayments at the same remaining term, then include switching fees and any break costs. The break-even point depends on those costs and the actual saving; extending the term can lower repayments while increasing total interest.

Frequently asked questions

How much can I save by refinancing my home loan?

Refinancing savings depend on your current and new rate, balance, remaining term and switching costs. Use the refinance calculator to compare the same term first. Extending the term can reduce monthly repayments while increasing total interest.

What are the costs of refinancing in Australia?

Switching can involve discharge, application, valuation, registration and legal fees, LMI or fixed-rate break costs. Obtain written quotes from both lenders. Promotional incentives have eligibility conditions and should not be assumed.

How do I know if refinancing is worth it?

Compare total switching costs with expected savings over the period you intend to keep the loan. Account for break costs, LMI, fees and any change in term or features. A positive calculator result is not a recommendation to refinance.

What is a refinance break-even period?

The refinance break-even period is the number of months it takes for your cumulative monthly savings to recover all the costs of switching loans. For illustration, $3,000 upfront fees divided by a constant $264 monthly saving gives about 11.36 months, or 12 whole months. This simple cash-flow comparison assumes the saving continues; later fees, rate changes or a longer new term can change the outcome.

Can I refinance a fixed rate home loan?

You may be able to refinance a fixed-rate loan, subject to approval and the existing contract. Request a current break-cost quote and include all switching fees. Do not assume the cost from a general rate comparison; extra repayments may also be restricted.

Data sources

RBA Cash Rate — Reserve Bank of Australia — 30 Sep 2026 (checked 14 Oct 2026)

ASIC MoneySmart — Mortgage Calculator Methodology — 2026

ASIC Moneysmart — switching home loans — reviewed 16 Oct 2026