All calculations run in your browser. No login required. · Updated for AY 2026-27
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Refinance Calculator Australia — Break-Even Period & Total Savings 2026

Last updated: Reviewed by Emma Hartley, CFP
A **home loan refinance calculator** helps you decide if switching lenders is worthwhile. It calculates the monthly saving from a lower rate, the total interest saved over your remaining loan term, and the break-even period — the number of months it takes for your savings to recoup the cost of refinancing. Refinancing a $480,000 loan from 6.8% to 6.1% (with $2,500 in costs) saves approximately **$171 per month** and breaks even in just 14 months. If you plan to hold the loan for more than 2 years, refinancing typically makes financial sense — even after factoring in all costs.
Refinance Calculator Australia
Your outstanding home loan balance
Your existing variable or fixed rate
Rate offered by new lender
Years left on your current mortgage
Discharge fee, application fee, legal costs (typically $1,500–$3,500)
Monthly Saving —
Annual Saving —
Break-Even Period —
Total Interest Saved —
View Year-by-Year Breakdown
Year-by-year growth breakdown

Real-World Examples — 2026

Rate drop from 6.8% to 6.1% on $480,000 balance

Refinancing a $480,000 loan with 25 years remaining from 6.8% to 6.1%, incurring $2,500 in refinance costs, saves approximately $2,052 per year ($171/month). The break-even period is approximately 14 months. Over the remaining 25 years, total interest saved is approximately $47,500.

Loyalty tax — same lender, negotiate a rate cut first

Before refinancing, call your lender and ask for a rate match. If your lender reduces your rate from 6.8% to 6.3% without you switching, you save approximately $1,500/year with zero costs and zero break-even period. If they refuse, refinancing to 6.1% with $2,500 in costs breaks even in 14 months.

Frequently Asked Questions

Financial advisers generally suggest reviewing your home loan every 2–3 years. The Australian mortgage market is competitive and lenders regularly offer better rates to new customers than to existing ones. A rate difference of even 0.5% on a $500,000 loan saves approximately $2,500 per year.

Typical refinance costs include a discharge fee from your existing lender ($150–$400), application or establishment fee from the new lender (often $0–$600 on competitive products), government registration fees ($100–$200), and legal fees ($600–$1,500). Total costs typically range from $1,500 to $3,500. Break costs can be significant if you break a fixed-rate loan early.

If you refinance out of a fixed-rate loan before the end of the fixed period, your lender will charge a break cost. This is calculated based on the difference between your contracted rate and the bank's current wholesale funding rate, multiplied by the remaining fixed period. Break costs can range from a few hundred to tens of thousands of dollars.

Yes, applying for refinancing triggers a hard credit enquiry, which can temporarily reduce your credit score by a small amount. Multiple applications in a short period can have a more noticeable effect. Use a mortgage broker to identify the best option before formally applying, to minimise the number of hard enquiries on your file.

Yes. If your property has increased in value or you have repaid a significant portion of the loan, you may have usable equity. Refinancing to a higher loan amount (cash-out refinancing) allows you to access this equity — typically for renovation, investment, or debt consolidation — subject to the lender's assessment and a maximum LVR of 80% to avoid LMI.