LoanMetric

Refinance Calculator

Compare current and proposed loan scenarios with a refinance calculator borrowers can use to review monthly repayment differences, break-even timing, and refinance savings. Model principal and interest or interest-only structures, adjust loan term and repayment frequency, include upfront refinance costs, and test cashback impact. You can also compare total interest, net benefit after costs, and whether refinancing improves your result over your expected hold period.

Built for Australian borrowers who want a clear home loan refinance calculator before lender application.

Your details

Current loan

6.40%

Current loan type

New loan

Comparison mode

5.89%

New loan type

Repayment frequency

Advanced: fees, cashback & assumptions

Fee inputs

Adds net costs to the new loan balance, increasing repayments.

Assumptions (display only):

  • Repayments assume interest rates stay constant over time.
  • Offset/redraw impacts are not included in this version.
  • TODO: Add offset, split-loan and step-rate scenarios in future version.

Summary

Savings

$172.58 per month

Break-even

Immediate

Net benefit

$51,773

You'll pay $172.58 less per month.

Break-even: immediate (no upfront costs to recover).

Estimated lifetime net benefit: $51,773 (includes fees and cashback).

Decision insights

Rate stress test reminder

Info
Try increasing the new rate by 1% to test whether refinance benefits remain resilient.

Break-even timing

Info
No upfront cost recovery required in this scenario (break-even is immediate).

Term extension check

Note
The refinance term is not longer than remaining term, which helps limit term-extension risk.

Repayment vs lifetime trade-off

Note
Review both repayment change and lifetime net benefit together before deciding.

Fees impact

Note
Fees appear proportionate to estimated savings in this scenario.

Repayment comparison

Current

$3,679.35

New

$3,506.77

Difference

-$172.58

What this means: compares repayments on your current loan vs the refinance option (based on your selected loan type).

Cost & savings

Likely beneficial

Positive net benefit and break-even within 3 years.

Current total interest: $553,804

New total interest: $502,030

Total fees: $0

Cashback included: $0

Interest saved (ex fees): $51,773

Net benefit (incl fees/cashback): $51,773

Break-even details

Cost to recover: $0

Monthly saving: $172.58

Break-even: Immediate

Amortisation insight

Current first-year interest: $34,933

New first-year interest: $32,129

This uses standard amortisation assumptions with constant rates.

Compare with Home Loan Calculator

Share this calculation

Share your current inputs and results with a deep link.

Results are estimates only and may differ from lender calculations. This information is general and not financial advice.

Related tools

Continue your scenario across LoanMetric calculators.

How this refinance calculator helps

Refinancing replaces your current mortgage with a new loan. This tool compares your current setup against a refinance option in one place.

It focuses on repayment changes, break-even time, and refinance home loan savings so you can check outcomes quickly.

Use results as guidance only; lender pricing, policy, and your circumstances can change final outcomes.

  • Repayment change between current and refinance scenarios
  • Break-even time to recover one-off costs
  • Net benefit after fees and cashback
  • Trade-off when extending loan term

When refinancing a home loan makes sense

Refinancing can make sense when a lower interest rate is available, when you want to switch between principal and interest and interest-only, or when your loan structure no longer matches your goals.

It can also help if you reduce term to target faster debt reduction, use cashback offers effectively, or consolidate debt while keeping total cost controlled.

When refinancing can save you money

  • Lower available interest rate compared with your current loan.
  • Switching variable to fixed (or fixed to variable) for your strategy.
  • Reducing loan term to cut total interest paid.
  • Applying confirmed cashback to offset refinance fees.
  • Consolidating debt where total loan comparison remains favorable.

Include realistic one-off costs such as break costs and discharge fees to avoid overstating refinance savings.

How to know if refinancing is worth it

A refinance calculator result is strongest when you assess monthly repayment difference, break-even time, refinance fees, and total interest savings together. Start with your current loan details, then test a refinance mortgage calculator with fees and cashback to compare scenarios. If break-even occurs within your expected hold period and net savings remain positive, refinancing may be worthwhile. If repayments are lower only because term is longer, check total interest carefully. This approach helps answer should-I-refinance questions with clearer trade-offs and fewer surprises.

For related analysis, use the home loan calculator, review the borrowing capacity calculator, track the RBA cash rate, and check definitions in the finance glossary.

Refinance calculator FAQs

Use net benefit, break-even time, and monthly repayment difference together. Refinancing is generally stronger when long-term savings remain positive after fees and cashback.

Methodology
  • P&I uses standard amortised repayment formula with constant rates.
  • Interest-only assumes interest payments across the full selected term in this v1 model.
  • Repayment frequency conversions use monthly baseline converted to fortnightly and weekly.
  • Break-even is based on one-time cost recovery from monthly repayment difference.
  • If fees are rolled into the new loan, refinanced principal increases accordingly.
  • Rates are user-entered and assumed constant over the comparison horizon.
  • TODO: add offset/redraw impact, split-loan support, step-rate changes, and LVR/LMI effects.

Estimates only. Not financial advice, credit advice, or a lender quote.

Data Sources & Assumptions

This refinance calculator does not fetch live lender rates. It uses your entered assumptions to keep comparisons transparent.

Market pages like RBA Cash Rate are informational context only and are not automatically applied to refinance calculations.

Calculations assume a constant interest rate and standard amortisation math.

This version excludes offset/redraw effects, split loans, and rate step changes. These are planned enhancements, not part of current outputs.

Disclaimer

  • Estimates only and not personal financial advice.
  • Actual outcomes depend on lender policy, fees, valuation, and eligibility.
  • Confirm rates, costs, and product terms with your lender before proceeding.