What if the new rate is higher?

Refinancing to a higher rate doesn't make sense for interest savings. You might still refinance for other reasons (e.g. different features, consolidating debt).

Does this include cashback?

No. If your new lender offers cashback, subtract it from the refinance fees to see your net break-even.

What about ongoing fees?

This calculator focuses on upfront fees and interest savings. Compare ongoing fees (e.g. annual package fee) separately.

Refinance Break-Even Calculator

How many months until refinancing pays off?

Enter your current loan balance and rate, the new rate you're considering, and upfront fees. We'll show you when you break even and your net savings over 1, 3 and 5 years.

Refinance Details

Enter your current loan balance and rates, plus the new rate and upfront fees. We'll show you how many months until you break even.

Current loan balance ($)

Current interest rate (%)

New interest rate (%)

Refinance fees ($)

Application, discharge, settlement and other upfront costs

Break-Even & Savings

Refinancing is worth it

Break-even6 months

You recover the refinance fees in 6 months from interest savings.

Net savings (1 year)$1,500

Net savings (3 years)$7,500

Net savings (5 years)$13,500

Monthly interest savings: $250

How to Use This Calculator

1Enter your current loan balance (what you still owe)
2Enter your current interest rate and the new rate you're considering
3Add upfront refinance fees (application, discharge, settlement)
4See how many months until you break even and your net savings over time

What is refinancing?

Refinancing means switching your home loan to a different lender or product, usually to get a lower interest rate. You pay off the old loan with the new one.

Upfront costs (application fees, discharge fees, settlement) mean you need to save enough in interest to cover those fees before you're ahead. This calculator shows when that happens.

When does refinancing make sense?

Rate difference: A lower rate saves interest each month. The bigger the gap, the faster you break even.
Fees: Application, discharge and settlement fees add up. Some lenders offer cashback that can offset these.
How long you'll stay: If you plan to sell or refinance again soon, you may not stay long enough to recover the fees.

Things to consider