Refinance Break-Even Spreadsheet

Start with the remaining loan, not a fresh borrowing amount

Enter your remaining balance, current rate and remaining term on Current Loan. Proposed Loan uses the same principal with its own rate, term and frequency. Application, valuation, legal, discharge and custom switching costs are entered separately. Costs are paid in cash rather than added to the refinanced balance.

The Dashboard compares current and proposed repayments, monthly cash-flow difference, upfront costs and the first estimated break-even month/date. One-, three- and five-year differences sit beside lifetime interest, fee and total-cost differences. The detailed monthly and annual views explain how those figures accumulate.

Worked example: fees change the break-even point

The illustrative starting case is a $650,000 balance at 6.50% with 25 years remaining, compared with 6.00% over the same term. Annual fees are $420 currently and $300 proposed. Application, valuation, legal, discharge and other costs total $1,550. None of these figures is a current lender offer.

The schedule compares the constant-rate repayments and $10 monthly recurring-fee difference, then subtracts the $1,550 upfront cost. The first non-negative cumulative value is the first break-even month. Increase switching costs and that point moves later; raise the proposed rate and the costs may not be recovered within the modelled terms.

Monthly budgets and first break-even have limits

Required payments use the same frequency-aware mortgage formula as Calcy. Monthly cases also match the underlying monthly repayment function in the refinance engine. Weekly and fortnightly payments are annualised into monthly budgeting equivalents for the cash-flow comparison. The schedule does not simulate actual bank debit dates. The displayed break-even date advances by calendar months using EDATE: a shorter destination month clamps to its last day, and month zero keeps the start date.

Each loan stops making repayments and incurring recurring fees at its own term. First break-even is a first crossing, not a promise that refinancing stays ahead. Extending the new term can reduce early repayments but create later costs after the existing loan would have ended. Inspect the full chart and lifetime result before interpreting an early positive difference.

Read estimated differences without treating them as advice

Before proceeding, ask the existing lender for a dated payout estimate and the proposed lender for its complete fee schedule. Revisit the break-even result if either quote changes. Keep a separate cash buffer for moving costs or other expenses that are outside this loan comparison and should not be called refinance savings.

Positive cost differences mean the proposed path has lower cash outflow under the entered assumptions. Horizon figures include principal, so they are not net-worth savings: remaining debts can differ. Lifetime interest difference plus fee difference reconciles to the total cost difference. Future savings depend on rates, fees, repayment behaviour and terms remaining as entered.

There is no automatic fixed-rate break-cost or LMI estimate, no cashback and no offset assumption. Enter actual quoted costs in the custom field where applicable, without repeating a discharge charge elsewhere. The model excludes tax and changing interest rates. Zero costs and a positive monthly difference show immediate break-even; equal costs with no upfront charge reach equality at month one. Save the assumptions and compare with lender documents.

Check the method and compare online

General context: ASIC Moneysmart: switching home loans. Calculations use the methodology and assumptions explained above.

• Refinance calculator
• When to refinance
• Fixed versus variable rates
• Plan upfront buying costs with the Budget Planner
• Calcy methodology and sources
• Browse free Calcy spreadsheets
• Report an outdated figure or calculation issue