Refinance break-even calculator
Switching lenders only pays off if the upfront cost is recouped by your monthly saving. We model both scenarios honestly: keep your remaining term, or reset to a fresh 30 years.
Your current loan
Variable P&I loans only in this version.
LVR on the refinance loan: 60.0%
The refinance offer
Defaults are 2026 mid-market. Replace any line with the figure on your offer letter.
Deducted from the upfront cost. $2000 - $5000 typical 2026 offer. Most lenders claw back if you refinance within 12-24 months.
How long you expect to keep the new loan before selling or refinancing again. Most owners review around year 5.
Costs to switch
$200 - $450 typical. Check your current loan's exit clause.
$0 - $800. Many lenders waive for refinance customers in 2026.
$0 - $600. Some lenders include a free valuation as an incentive.
$200 - $500 if you use the lender's panel solicitor.
Your refinance LVR is at or below 80%, so no new-loan LMI is applied.
Break-even, keeping your remaining term
10 months
Refinance pays off in 10 months, inside your 5-year horizon, if you keep your remaining term. An estimate based on these inputs; the new lender's service and features matter too.
- Monthly saving
- $143/mo
- Net upfront cost
- $1,300
- Total interest, same term
- $478,473
Reset to 30 years costs more total interest
Variable rates change
Stay, or refinance two ways
Keeping your remaining term against resetting to a fresh 30 years.
| Option | Monthly saving | Break-even | Interest, full term |
|---|---|---|---|
| Stay on current loan 25 years remaining | - | - | $521,445 |
| Refinance, keep same term Lower total interest25 years remaining | $143 / month | 10 months | $478,473 |
| Refinance, reset to 30 years 30 years from today | $334 / month | 4 months | $595,350 |
Upfront cost to switch
Every dollar you spend on day one to move the loan. Cashback is subtracted, so a generous offer can net you to zero.
- Discharge (current lender)
- $350
- Establishment (new lender)
- $400
- Valuation
- $300
- Legal / settlement
- $250
- New-loan LMINot applied
- $0
- Cashback offer
- $0
- Net upfront cost
- $1,300
Cumulative cost over time
Each line adds up your monthly payments plus the upfront switching cost, by month from the refinance. The dashed marker shows the month the refinance line drops below the stay line, which is your break-even.
Total interest paid (full term)
The honest long view. A lower rate over a fresh 30 years can quietly cost more than staying put, and this chart surfaces that.
Variable-rate principal and interest loans only. Fixed-rate break costs and interest-only loans are not modelled yet. Fee defaults are 2026 mid-market figures and your offer letter overrides them. Data as of May 2026.
Keep going
Compare loans without the refinance lens, or stress-test the new rate.
Frequently asked questions
For illustration only. This tool does not constitute personal financial advice. Grant amounts, caps, and eligibility rules may change. Federal scheme caps shown are for capital city/regional centres and may differ for other areas. Always verify with your state revenue office and Housing Australia, and consider seeking independent financial advice before making decisions.