Compare your current loan with a refinanced one: new payment, monthly and total savings, and break-even point after costs. Enter your values; the result updates as you type, with the method shown below.
About this calculator
Refinancing means replacing your current loan with a new one at a lower rate, usually from another lender. It lowers the payment or the total interest, but fees, penalties and a new guarantee can eat up the saving.
Enter the remaining balance, the current rate and years left, then the new rate, new duration and costs. The calculator shows the monthly saving, the total saving over the loan and the break-even point in months.
When to use it
- Checking whether a lower market rate is worth a refinance.
- Comparing a renegotiation with your bank and an outside offer.
- Seeing how long it takes to recover the fees.
- Deciding before selling the property.
How to read the result
The break-even point is the number of months of savings needed to cover the costs. If you plan to sell before then, refinancing loses money.
A common rule of thumb says refinancing pays off with a rate gap of about 0.7 to 1 point, but the remaining duration and balance matter more.
Mistakes to avoid
- Forgetting early repayment penalties and guarantee fees.
- Extending the duration and paying more interest overall.
- Comparing without the new borrower insurance.
Formula
Saving = old payment − new payment; break-even = costs / saving
Worked example
180,000 at 4.5% over 20 years refinanced at 3.5% with 3,000 of costs: 77.44 saved per month, break-even in 39 months.
Frequently asked questions
When is refinancing worth it?
When the total saving stays positive after costs, usually with a rate drop of about 0.7 points or more.
What costs are included?
Fees, penalties and guarantees: they are added to the new loan.
When is refinancing worth it?
When the total saving after costs is positive and you keep the loan beyond the break-even point.
Refinance or renegotiate?
Ask your bank first: a renegotiation avoids most fees.
Can I change the duration?
Yes. Keeping the same duration shows the real saving.
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Results are estimates for information only. Check important figures with a professional.