How this refinance calculator works

Refinancing is only worth it if what you save is more than what it costs you to switch. This calculator puts the two side by side. You enter three numbers from your latest statement: your loan balance, your current rate and the years left. We fill in the rest from the lenders we work with: an indicative rate from our panel, the usual cost of switching, and any lender cashback you may be eligible for. It shows the repayment on each loan, the saving each month, and the number that matters most: how long until the saving has paid back the cost of switching.

The net saving, not the headline one

A lower rate looks good on day one. The honest figure is the saving after fees, with any cashback counted in. That is the large number at the top of the results. Below it you will see your net position after three and five years, which is the fairer test if you expect to refinance or sell again within a few years.

Why the term matters

The new loan runs over the same years you have left, so a lower repayment is a real saving. Resetting to a longer term would drop the repayment further, but you would pay interest for longer and it often costs far more over the life of the loan. When we look at a real refinance for you we show both, so you can see the trade-off before you choose.

Where the new rate comes from

The rate in the calculator is an estimate: refinancing typically lands about a quarter of a percentage point under the rate you pay today, checked against rates across the lenders on our panel, for an owner-occupier loan with a loan to value ratio of 80 percent or less, and the date it applies to is shown on the page. It is not an offer or a guarantee, and your actual rate could be lower or higher. It depends on the lender’s assessment of you and your property, which is why the real number comes from a conversation with us rather than from a calculator.

Keep your repayment, finish sooner

Many borrowers get more out of a refinance by not lowering the repayment at all. Keep paying what you pay today at the new, lower rate and more of each payment goes to the balance. The results show how many months sooner the loan would be cleared and what that is worth after fees.

What to check before you switch

• Ask your current lender first. A call asking them to match a competitor’s rate is free and often works, which makes the whole switch unnecessary.
• Fixed rate loans. Leaving before the fixed period ends can trigger break costs, which can be large and are not in this calculator. Check before you commit.
• Cashback. Usually comes with a clawback if you leave within two to four years, and sometimes a slightly higher rate. Read the terms before counting it.
• Your loan to value ratio. The calculator assumes 80% or less, which generally unlocks the best rates. Above it you may pay Lenders Mortgage Insurance or a rate premium, and fewer lenders will take you.
• Features you would lose. An offset account, redraw or a split you rely on may not come with the cheaper loan.
• Comparison rates. A headline rate with high ongoing fees can cost more than a slightly higher rate with none. Compare the whole loan, not the number on the poster.

If you want the real rate you could get and which lenders would actually accept you, that is a conversation rather than a formula, and it is part of how we help with refinancing.

Common questions

When is refinancing worth it?

When the break-even point is comfortably shorter than the time you expect to keep the loan. As a rough guide, a rate gap under a quarter of a percentage point is often eaten up by fees, and a gap of half a point or more usually deserves a proper look.

Is this calculator free?

Yes, completely, with no sign-up. Nothing is stored or sent anywhere.

Does using it affect my credit score?

No. It runs in your browser and makes no credit enquiry.

Can I use it for an investment loan?

Yes, the repayment maths is the same. Investment loans often carry a different rate and may be interest only, which this calculator does not model, so treat the result as a guide.

Free for anyone to use, including other brokers

Buyers, agents, accountants and other brokers are welcome to use this calculator and to link to it from their own sites, newsletters or client emails. No permission needed, and a link back to this page is appreciated.

Home loan repayment calculator · Refinancing · Book a consultation

Estimates only, for general information. Results are not an offer, a quote, or credit assistance, and do not take your objectives, financial situation or needs into account. Actual savings depend on the lender’s current policy, the product, your property value and the assessment of your circumstances. Easy Loan Finance is a Credit Representative (CRN 568863) of Beagle Finance Pty Ltd, Australian Credit Licence 383640.