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Refinance Break-Even Calculator
Refinancing costs money upfront (exit fees, discharge, new setup). This tool tells you exactly when those fees are paid back by your lower monthly repayments — and how much you save over the life of the loan.
When is refinancing worth it?
General rule: if you break even within 18 months and plan to stay in the home longer, refinance. If break-even is 24+ months and you might sell or refinance again, be cautious. In 2026, refinance cashbacks of $1,500–$4,000 often make even small rate drops (0.15–0.25%) worth it.
What fees are involved?
Exit/discharge fee from current lender ($350–$800), settlement fee, new application/setup fee ($0–$800), valuation fee ($300–$500), LMI (if switching lender with < 20% equity), and possibly break costs on a fixed-rate loan (can be thousands). Get all fees quoted in writing.
What is the risk of resetting the loan term?
If you refinance and reset back to a 30-year term when you had 22 years left, your monthly payment drops but you extend the debt by 8 years and pay far more total interest. Best practice: match the remaining term OR keep the shorter term and take the monthly saving.