Finance & Money

Refinance Radar

Finance & Money

Refinance Radar

Live answerMonth 8 break-even0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Remaining balance ($)Enter what you still owe on the current loan.Current interest rate (% p.a.)Use the nominal annual rate on the current loan.Months remaining (months)Enter the remaining term you want to compare.Offset account balance ($)Optional offset balance that reduces interest on the current loan path.New interest rate (% p.a.)Use the rate offered by the new lender.Current loan fixed rate?Fixed-rate loans may have lender break costs if exited early.Fixed-rate break costs ($)Only counted when the current loan fixed-rate option is set to yes.Discharge / exit fee ($)What the current lender charges to release the loan.Early repayment penalty ($)Any extra penalty for paying out the old loan early.Valuation fee ($)Property valuation or assessment fee for the new lender.Legal / conveyancing costs ($)Legal, conveyancing or settlement costs.Loan establishment fee ($)Application, origination or setup fee from the new lender.Rate lock costs ($)Optional cost to lock the offered rate during processing.Processing time (days)Optional settlement delay before the new rate starts.Restructure loan term?Use this when the refinance also changes the loan length.New loan term (years)Used only when term restructure is selected.Split fixed / variable?Model part of the refinanced balance at the new rate and the rest at the current rate.Fixed portion (%)Used only for the split-loan scenario.

Live resultMonth 8 break-even0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Formula used

Monthly payment = P × r ÷ (1 − (1 + r)^−n). Current interest uses the remaining balance minus any offset balance. New-loan interest uses the offered rate, or a weighted split between the new rate and current rate when split-loan mode is selected. Total upfront cost = discharge fee + fixed-rate break costs if selected + early repayment penalty + valuation fee + legal costs + establishment fee + rate-lock costs. Break-even month = first month where cumulative interest saving reaches total upfront cost, plus any processing delay expressed in months.

This is the method behind the answer, so the result can be checked rather than simply trusted.

Live math canvas

Your numbers, formula and explanation together

Refinance Radar: Month 8 break-even. 0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Monthly payment = P × r ÷ (1 − (1 + r)^−n). Current interest uses the remaining balance minus any offset balance. New-loan interest uses the offered rate, or a weighted split between the new rate and current rate when split-loan mode is selected. Total upfront cost = discharge fee + fixed-rate break costs if selected + early repayment penalty + valuation fee + legal costs + establishment fee + rate-lock costs. Break-even month = first month where cumulative interest saving reaches total upfront cost, plus any processing delay expressed in months.

Apply the formulaMonthly payment = P × r ÷ (1 − (1 + r)^−n). Current interest uses the remaining balance minus any offset balance. New-loan interest uses the offered rate, or a weighted split between the new rate and current rate when split-loan mode is selected. Total upfront cost = discharge fee + fixed-rate break costs if selected + early repayment penalty + valuation fee + legal costs + establishment fee + rate-lock costs. Break-even month = first month where cumulative interest saving reaches total upfront cost, plus any processing delay expressed in months.Month 8 break-even0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Remaining balance: 580,000 $
Current interest rate: 6.15 % p.a.
Months remaining: 240 months
Offset account balance: 0 $
New interest rate: 5.79 % p.a.
Current loan fixed rate?: No
Fixed-rate break costs: 0 $
Discharge / exit fee: 250 $

Resulting answer

Month 8 break-even

0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Answer: Month 8 break-even
Live support: 0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Assumptions used

What this answer assumes

Best for a first-pass refinance decision where the main question is whether the rate saving covers the cost of switching before the loan ends.

The comparison keeps the same starting balance for both loans.
Rates are treated as fixed nominal annual rates converted to monthly periods.
Switching costs are treated as upfront costs, not rolled into the new loan.
Offset balance reduces the current-loan interest path only; offset, redraw and package-account features on the new loan are not modelled.
Term restructure uses the new term for the new-loan payment while the comparison still reports savings over the current remaining term.
Split-loan mode treats the fixed portion at the new rate and the variable portion at the current rate as a simplified weighted interest comparison.

Master’s Tip

How to use the result well

Master's Tip: a lower rate is not enough by itself. Print the cost line, payoff date, break-even month and total remaining interest saving before switching lenders.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Remaining balance: 580,000 $
Current interest rate: 6.15 % p.a.
Months remaining: 240 months
Offset account balance: 0 $

Visual grid

This number is one point on a larger pattern

Refinance Radar is not just a final answer. It is a step on a line: before and after, input and output, assumption and result.

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InputFormulaResult

Month 8 break-even

CalculationTime keeps the path visible: the input, the method and the final number belong together.

Month 8 break-even0.36% rate saving · first-month interest saving 174.00 · switching costs 1,050.00 · estimated net saving 27,823.58 over 240 months · payoff around September 2046 · break-even around month 8.

Inputs

Remaining balance: 580,000 $
Current interest rate: 6.15 % p.a.
Months remaining: 240 months
Offset account balance: 0 $
New interest rate: 5.79 % p.a.
Current loan fixed rate?: No
Fixed-rate break costs: 0 $
Discharge / exit fee: 250 $
Early repayment penalty: 0 $
Valuation fee: 300 $
Legal / conveyancing costs: 400 $
Loan establishment fee: 100 $
Rate lock costs: 0 $
Processing time: 21 days
Restructure loan term?: No, keep remaining term
New loan term: 25 years
Split fixed / variable?: No, all at new rate
Fixed portion: 50 %

Method

A $580,000 balance at 6.15% with 240 months remaining compared with 5.79% has about $174 first-month interest saving. With $1,050 total switching costs and a 21-day processing delay, the practical break-even is about month 8. If valuation, legal, break or rate-lock costs change, the break-even month moves with them.

Assumptions

The comparison keeps the same starting balance for both loans.
Rates are treated as fixed nominal annual rates converted to monthly periods.
Switching costs are treated as upfront costs, not rolled into the new loan.
Offset balance reduces the current-loan interest path only; offset, redraw and package-account features on the new loan are not modelled.

Notes

Use this space on the printed report for client, supplier, classroom, job-location, measurement, quote or approval notes.