Savings tool

Refinance Calculator

See roughly how long it could take for a lower rate to pay back the cost of switching — and what you could save over the remaining term.

%
%
$
$

$600–$2,000 typical, more if breaking a fixed rate early. Leave blank if unsure.

What counts as ? Usually a , a new lender's application fee, and (for fixed loans) .

Understanding the break-even point

The refinance break-even point is the month at which your accumulated monthly savings finally exceed the one-off cost of switching lenders — application fees, discharge fees, government charges, and any LMI if your LVR is above 80%. Every month after that is genuine cash back in your household budget. It's the single most useful number in a refinance decision because it turns a fuzzy 'is switching worth it?' question into a concrete date on the calendar.

When to use it

  • You're comparing keeping your current loan against refinancing to a sharper rate on a similar product.
  • Your bank has offered you a discount to stay — you want to test whether it beats the market or just narrows the gap.
  • Your fixed-rate period is expiring and you want to know whether locking in again versus switching lender pays off.

What the result actually means

  • A break-even under 24 months is usually a strong signal: you recoup switching costs inside two years and enjoy the savings on every month thereafter.
  • Break-even between 24–48 months is worth looking at but sensitive to how long you plan to keep the loan — sell within four years and the switch may not pay back.
  • Break-even beyond 48 months usually means the rate gap is too narrow, the switching fees too high, or both — a re-negotiation with your current lender may deliver more.

What it doesn't tell you

  • It ignores structural improvements — an offset account, split loan, or shorter term can save far more than the headline rate difference.
  • It ignores tax deductibility on investment loans, which can materially change the real cost of borrowing.
  • It assumes rates stay constant. In practice, both your current lender's rate and market rates move — real savings usually differ from the estimate.

Sensible next steps

  • Run the numbers, then get a complimentary Equity Snapshot — we benchmark your live loan against 60+ lenders in writing.
  • If your break-even is short, we handle the switch end-to-end. If it's long, we can often re-negotiate with your current lender on your behalf.

Important — General Information Only

This information is general in nature and does not take into account your personal objectives, financial situation or needs. It is not personal advice, credit advice, tax advice or legal advice, and is not a recommendation to enter into, refinance, or remain in any particular credit contract. Any figures, calculations, or projections shown are simplified examples for illustration only — they are not guarantees or forecasts, and actual outcomes will vary based on your circumstances and the lender's assessment.

See our Credit Guide and Privacy Policy for more.