Mortgage Refinance Savings Calculator
Compare interest rate reduction, monthly savings, and payback period.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Borrowing power, repayments and refinance — modelled on current Australian lender criteria.
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Formula & How Mortgage Refinance Savings Calculator Works
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 $1,000 in fees, you recover them in about 6.5 months. Compare the total cost over the time you expect to keep the loan, not just the headline rate, and include discharge fees, application fees and any break costs if you are on a fixed rate. Resetting the term to 30 years lowers repayments but can increase total interest.
- Enter Current Loan Balance ($): Input your target parameter value.
- Enter Current Interest Rate (%): Input your target parameter value.
- Enter New Lower Interest Rate (%): Input your target parameter value.
- Enter Remaining Loan Term (Years): Input your target parameter value.
- Enter Total Switching & Valuation Fees ($): Input your target parameter value.
- Apply Formula: Calculate using
Monthly Savings = Current Monthly - New Monthly. - 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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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Consumer guidance on mortgage borrowing capacity, compound interest formulas, and loan fees.
Official cash rate target announcements, monetary policy statements, and national economic statistical data.
Official U.S. Federal Funds Rate and comprehensive macroeconomic time-series data.
Key Eurozone interest rates, deposit facility rates, and monetary policy operations.
Residential mortgage serviceability buffer framework (3.0% stress test hurdle rate).
Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.