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Finance & Money

Refinance Radar

Compare your current loan with a refinance offer to see monthly saving, upfront switching costs, break-even month and estimated interest saved.

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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 June 2046 · break-even around month 8.
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 June 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.

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.

Micro-timehours, minutes, shiftsHuman scaledays, weeks, projectsMacro-timemonths, years, calendars
InputFormulaResult
Month 8 break-even

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

CalculationTime

Refinance Radar Calculation Report

Report date:

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 June 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

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.

  1. 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.

Source: https://calculationtime.com/calculators/refinance-radar

This report shows the calculation inputs, formula, assumptions and result for review. It is not legal, payroll, tax, engineering, financial or academic advice unless a qualified professional confirms the applicable rules.

Formula

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.

Worked example

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.

Professional note

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.

Regional and unit assumptions

General amortising-loan mathematics for refinance comparison. This is an educational planning calculator, not financial advice, credit assistance or a lender quote.

Assumptions and limitations

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

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.

Standard or basis

General amortising-loan mathematics for refinance comparison. This is an educational planning calculator, not financial advice, credit assistance or a lender quote.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

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.

Related calculators

Refinance CalculatorMortgage CalculatorLoan CalculatorAmortization CalculatorPayment / Interest Equivalent Calculator

Questions

What is the refinance break-even point?

It is the first month where the accumulated interest saving from the lower rate has covered the upfront cost of switching loans.

Why does processing time matter?

A refinance takes time to settle. The calculator converts processing days into an approximate delay so the break-even date reflects the wait before the new loan starts.

What costs should I include?

Include discharge fees, break costs, early repayment penalties, valuation, legal, establishment, rate-lock and other lender costs that you need to pay or add to the loan because of the switch.

What if the new loan has a different term?

Turn on the term restructure option and enter the new loan term. Extending the term can lower payment while increasing lifetime interest, so compare the total interest line too.

Can I include an offset account?

Yes. Enter the current offset balance to reduce the interest calculated on the current loan path. The calculator does not model a new offset facility unless you reflect that in the rate and cost assumptions.

Can I test a split fixed and variable refinance?

Yes. Turn on split-loan mode and set the fixed portion percentage. The fixed portion uses the new rate and the variable portion uses the current rate as a simple weighted scenario.

Is refinancing always worth it when break-even is soon?

Not always. The calculator shows the arithmetic, but your plans to sell, refinance again, change rate type or use offset/redraw features can change the decision.

Calculation note

Refinance decisions are timing problems as much as rate problems: a borrower pays switching costs now in exchange for lower interest over future months.

The break-even month keeps the decision honest

A lower advertised rate can still be a weak deal if fees are high or the borrower plans to leave before the savings catch up.

Interest saving should be visible month by month

Comparing amortisation schedules keeps the calculation tied to the remaining balance, not just a rough rate difference.

Processing delays move the practical answer

A refinance normally takes days or weeks to settle, so the useful answer is not only costs divided by saving. It is when the borrower actually gets ahead.

Sources and further readingConsumer Financial Protection Bureau — MortgagesConsumer Financial Protection Bureau — Loan Estimate explainer