Refinance Calculator
A lower rate does not always mean a cheaper loan. If the new loan starts the clock again, say 30 years after you have already paid 5, the extra years of interest can eat the whole saving. Enter your current loan and the offer to see the total cost of each, for any term you choose.
Your current loan
On your latest statement or in your banking app.
The nominal annual rate, not the APR.
The new loan
The nominal annual rate of the offer.
Any term from 1 month to 50 years. Banks set their own minimum and maximum terms and age limits, so check what your bank allows.
Refinancing costs
Early-repayment fee on the old loan, arrangement fee, notary. Add them up.
Valuation, land registry and other flat fees.
Lower payment, almost no saving
Your monthly payment drops by $301, but you save only $97 in total, less than 1% of what you still owe. The extra years of interest eat up almost all of the lower rate.
| Item | Stay | Refinance |
|---|---|---|
| Monthly payment | $1,804 | $1,503 |
| Time to repay | 25 years | 30 years |
| Interest still to pay | $261,213 | $261,116 |
| Refinancing costs | $0 | $0 |
| Total still to pay | $541,213 | $541,116 |
Where the difference comes from
The rate: keeping your current end date, the new rate saves $50,158 after costs.
The term: stretching the loan adds $50,061 of extra interest.
- Over 30 years, the new rate must be below 5% to save money.
- Keeping your current end date (25 years), below 6% is enough.
- If you sell or repay early: refinancing comes out cheaper after 1 month and stays ahead.
- Tip: keep paying $1,804 a month on the new loan and it is repaid in 20 years 11 months, saving $89,802 compared with staying.
A planning aid, not financial advice. Rates are assumed to stay as entered, apart from the change you set. Fees, overpayment rules and term limits depend on your bank and contract.
How to compare a refinance offer
- Take your current balance, rate and remaining term from your latest statement or banking app. If you only know the original loan, switch to "work it out from my original loan".
- Enter the nominal rate of the offer (not the APR, THM or DAE, which already include fees) and add the fees separately: early-repayment fee, arrangement fee, notary, valuation.
- Try different terms. Compare the total, not just the monthly payment, and check the break-even rate: an offer above it costs you money over the life of the loan.
Planning a new mortgage from scratch? Test the full cost, fixed periods and rate shocks in our Mortgage Reality Check
Want to keep your budget going after the calculator? See Volora, the private budget app
Guides on this topic
- When Is Refinancing Your Mortgage Worth It?
A lower rate doesn't always mean a cheaper loan. Compare a refinance offer by total cost: the term trap, fees, the break-even rate and teaser rates.
- APR vs interest rate: which one should you compare loans on?
Interest rate vs APR (THM in Hungary, DAE in Romania): what the APR includes and leaves out, and the order to compare loan offers in. With a worked example.