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Refinance Break-Even Calculator

Estimate how long a possible repayment difference may take to recover the switching costs you enter, under the stated assumptions. The estimate is one input into a broader decision—total interest, loan term, features, flexibility and suitability also matter.

Your current loan

Enter approximate information about your current loan. This provides a baseline for the break-even estimate.

Use the approximate balance currently owing.

Use the annual rate on your latest loan statement or banking app. The current required repayment is derived from the balance, rate and remaining term.

Remaining loan term
years
months

Enter the approximate time remaining on the current loan—not the original term.

Possible refinance scenario

This section models a possible new loan structure under selected assumptions. It does not represent a lender offer or recommendation. Estimate a repayment first if you are unsure of a figure.

Enter the estimated annual rate for the possible new loan. The estimated new required repayment is derived from the balance, this rate and the proposed new term.

Include estimates of discharge, application, valuation, registration, settlement and any fixed-rate break fees that may apply.

Proposed new loan term
years
months

Enter the proposed term for the possible new loan. A longer term than your remaining term may lower required repayments while increasing total interest.

Your estimated break-even point

These results show approximately how long it may take for the modelled repayment difference to recover the switching costs you entered, under the assumptions below.

Enter your current loan and a possible refinance scenario, then select Estimate to see the result.

This Break-Even Calculator provides a general estimate only. It does not consider every fee, future rate change, total interest or your full circumstances. Results are not a loan offer, credit assessment, approval or personal recommendation.

Reading the result

What the break-even estimate can—and cannot—tell you.

It can help you explore

  • How long a repayment difference may take to recover stated switching costs.
  • Whether switching costs are large relative to the repayment difference.
  • How a longer or shorter proposed term may interact with the break-even period.
  • Whether assumptions such as very high costs or very small repayment differences make a change less likely to be worthwhile on this simple basis.

It cannot tell you

  • Whether a refinance is suitable.
  • Whether a refinance will be approved.
  • Which product is best.
  • Whether actual rates or repayments will match the assumptions.
  • Whether a different term or feature would be more appropriate.
  • The real-world total interest under each option.
Break-even as one input

A shorter break-even does not always mean a better path.

The break-even estimate focuses on repayment difference and switching costs. A refinance may increase or decrease total estimated interest, change the remaining term, alter features and affect how flexible the loan is.

Term and total interest

A lower repayment that extends the term may increase the total cost, even if switching costs are recovered.

Features and flexibility

Offset, redraw, fees, repayment flexibility and other features also matter. A lower repayment alone does not describe the whole picture.

Behaviour and risk

Future rate changes, repayment behaviour and changes in circumstances all affect actual outcomes.

Explore the Mortgage Repayment Calculator
Apply the estimate to your current loan

See how break-even fits into your broader mortgage picture.

The Mortgage Freedom Review can place a break-even estimate alongside the current loan information, repayment and interest scenarios, switching costs, features, term and the possible Stay, Reprice or Refinance paths.

This starts an enquiry—not a loan application, recommendation, approval or guarantee that a refinance will be worthwhile.

This Break-Even Calculator provides a general estimate only. Results are not a loan offer, credit assessment, approval or personal recommendation.

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.