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Refinance savings calculator
Plug in your current loan vs a new rate to see your monthly saving, total saving over the remaining term, and how many months until the switch pays for itself.
What you owe right now.
What your existing lender is charging.
Pre-filled with today's lowest variable: 5.89%.
Years left on your current loan.
Discharge fee + valuation + legal + LMI (if any). Typical: $300–$1,500.
Switching at 5.89% saves you $182/month.
Current monthly repayment
$3,762
New monthly repayment
$3,579
Monthly saving
$182
Break-even point
6 months
When monthly savings cover your switch costs
Saved over remaining term
$58,082
After switch costs, over the remaining term
Total interest saved
$59,032
Total interest difference between the two loans
How this is calculated
We compare two amortising loans at the same balance + remaining term. The monthly repayment formula is the standard P&I model: M = P · r · (1+r)^n / ((1+r)^n − 1), where P is the balance, r is the monthly rate (annual ÷ 12), and n is the months remaining. Total saving subtracts your one-off switch costs from the cumulative monthly saving over the remaining term.
What this calc doesn’t model: potential cashback offers from the new lender (which can offset switch costs); LMI if your equity is now under 80% (which would push the calc the other way); and lender-specific package fees (~$395/yr on some wealth-package products). A broker can fold these in for your specific scenario.
Want a real number, not a ballpark?
These figures are estimates. A 30-min broker consult will run your specific scenario against the actual lender policies, no fees, no obligation.
Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis, see footer for the full disclaimer.
How much can I save by refinancing?
Your saving is the gap between your current rate and a sharper one, applied over your remaining term. As of 29 July 2026, the lowest variable owner-occupier rate Ratesniffers tracks is 5.89% p.a. A borrower on 6.75% p.a. with $600,000 owing over 25 years would save roughly $320 a month, about $3,840 a year, by switching to 5.89%.
When is refinancing worth it?
Refinancing pays off once your monthly saving has recovered the cost of switching, the break-even point. Switching costs are usually $500 to $1,200 (discharge fee, new application or settlement fees, government charges), and many lenders pay a cashback that can wipe them out entirely. If you will hold the loan beyond the break-even, and most people do, the switch is worth it. The classic mistake is chasing a lower rate into a loan with a $395 annual package fee that quietly eats the saving, which is why our hub tables rank by comparison rate.
How long does refinancing take?
Two to four weeks from application to settlement with a well-prepared file, sometimes up to six if valuations or title transfers are slow. Your new lender manages the discharge with your old lender, so most of the elapsed time is waiting rather than work on your part. Compare today's refinance rates first, then apply once to keep credit enquiries to a minimum.
Refinancing questions, answered
How much can I save by refinancing my home loan?
It depends on the gap between your current rate and the new rate, your loan balance, and remaining term. As a rough guide, every 0.50% you shave off the rate is worth about $260/month on a $500,000 loan, but switching costs (discharge, settlement, government fees) need to be subtracted to find the real break-even.
What is the break-even point on a refinance?
It's the number of months until your monthly savings have repaid the cost of switching (typically $500 to $1,200 in fees, sometimes offset by a cashback). If you'll stay in the loan beyond that point, the refinance is worth it.
How long does refinancing take?
From application to settlement, a refinance usually takes two to four weeks with a well-prepared file, though it can stretch to six weeks if valuations or title transfers are slow. Your new lender handles the discharge with your old lender; you mostly wait. Having payslips, ID and your current loan statements ready up front is what keeps it at the fast end.
Will refinancing hurt my credit score?
A refinance triggers one credit enquiry, which can shave a few points off your score temporarily. Multiple enquiries in a short window, for example applying with several lenders at once, has a larger impact, so it's better to compare first and apply once.
Are the figures in this calculator final?
No. They're estimates based on the rate, balance, term and offset balance you enter. Actual savings depend on lender fees, your specific loan features, and any cashback offer at the time of settlement.
Next: compare refinance rates and cashback offers, check the cheapest rates overall, or estimate your new repayment with the repayment calculator.