Home Loans Tool

Mortgage Refinance Savings Calculator

Compare interest rate reduction, monthly savings, and payback period.

Last reviewed by the myCalculator Editorial Team

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

Input Parameters

Calculation Results

Monthly Repayment Savings
$255/mo
5-Year Net Savings (After Fees)
$14,281
Payback Period for Switching Fees
4 Months
Current Monthly Repayment
$3,748
New Monthly Repayment
$3,493

Formula & How Mortgage Refinance Savings Calculator Works

Mathematical Formula
Monthly Savings = Current Monthly - New Monthly

Refinancing replaces your loan with a new one, usually at a lower rate. On a $500,000 loan with 25 years left, dropping from 6.5% to 6.0% cuts the repayment from about $3,376 to about $3,222 a month, a saving of about $155. If switching costs $1,000 in fees, you recover them in about 6.5 months. Compare the total cost over the time you expect to keep the loan, not just the headline rate, and include discharge fees, application fees and any break costs if you are on a fixed rate. Resetting the term to 30 years lowers repayments but can increase total interest.

How to Calculate Mortgage Refinance Savings Calculator (Step-by-Step)
  1. Enter Current Loan Balance ($): Input your target parameter value.
  2. Enter Current Interest Rate (%): Input your target parameter value.
  3. Enter New Lower Interest Rate (%): Input your target parameter value.
  4. Enter Remaining Loan Term (Years): Input your target parameter value.
  5. Enter Total Switching & Valuation Fees ($): Input your target parameter value.
  6. Apply Formula: Calculate using Monthly Savings = Current Monthly - New Monthly.
  7. Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)

How long does refinancing take?

Typically 2 to 4 weeks from application to settlement.

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Calculated via mycalculator.com.au — Free Australian Calculator Hub
Official Regulatory & Government Data Sources

Authoritative Standards & Verified Reference Citations

Independent & Verified

Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

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