Home & mortgage
Refinance Calculator
See when refinancing or remortgaging pays for itself, after fees and the exit charge your country's law allows, and what it saves over the term. 15 countries.
Months for the refinance to pay for itself
3 yrs 1 mo
$199.74 a month less · $55,114 saved over the whole term
How the break-even was worked out
Each month counts the payments saved so far, $199.74 a month, plus how much less you owe on the new loan than on the old, less the $9,600.00 paid to switch. The first month that total is above zero and stays there is the break-even.
Dividing the costs by the monthly saving, as most calculators do, gives 4 yrs 1 mo. The figures differ because a lower rate also pays the balance down faster, and a longer new term pays it down slower.
How the exit charge was set
A prepayment penalty is allowed only on a fixed-rate qualified mortgage that is not higher-priced: at most 2% of the balance repaid in the first two years and 1% in the third, nothing after (12 CFR 1026.43(g)). Adjustable-rate and high-cost loans may carry none.
Most American mortgages carry no prepayment penalty at all; enter one only if your note has one. The legal maximum in this case is $0.00.
Monthly saving
$199.74
$2,097.78 now, $1,898.04 after
Cost of switching
$9,600
$9,600 fees and $0 exit charge
Interest saved
$64,714
over what is left of each loan
Saved over the term
$55,114
all payments, less the cash paid to switch
United States early repayment rules. An estimate, not financial advice, providers may calculate differently.
- Ahead by
Staying against switching
| Stay | Refinance | |
|---|---|---|
| Monthly payment | $2,097.78 | $1,898.04 |
| Payments left | 27 yrs | 27 yrs |
| Interest still to pay | $359,677 | $294,963 |
| Paid in cash to switch | $0 | $9,600 |
In the United States the penalty is the exception, and the closing costs of the new loan are what a refinance has to earn back.
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How this is calculated
Both mortgages are run month by month at their own rate and term, and the switch costs, the new loan's fees plus the charge for leaving the old one, are paid in cash or added to the new loan. The exit charge is the one you enter, or the one lenders in your country usually ask, and it is never allowed above the ceiling that country's law sets. The break-even is the first month from which the payments you have saved, plus how much less you owe on the new loan, exceed what the switch cost you, and stay ahead.
ahead(m)saved(m) + gap(m) − cash
break-eventhe first m where ahead stays ≥ 0
- m
- months since the switch
- saved(m)
- old payments minus new payments, added up to month m
- gap(m)
- the old loan's balance at month m minus the new loan's
- cash
- fees plus exit charge paid on the day; zero when added to the loan
What this does not include
- Tax on mortgage interest, or the loss of a deduction, which changes the real saving in some countries.
- Cash taken out of the home: the new loan is the balance plus any costs you roll in.
- Rate changes after the switch; both loans keep the rate you enter for their whole term.
- A lender's own approval: a switch still needs affordability and a valuation.
How this calculator works
When does refinancing pay? Break-even, exit charges and a longer term. How the break-even month is worked out, why it differs from fees divided by the saving, and what each country's law lets a lender charge you for leaving.
Data sources
| Dataset | Authority | Effective | Status |
|---|---|---|---|
| United States mortgage qualifying ratios | Consumer Financial Protection Bureau | Within its effective period | |
| United Kingdom mortgage lending limits | Bank of England | Within its effective period | |
| German mortgage affordability conventions | BaFin | Within its effective period | |
| Canadian debt service ratios | CMHC | Within its effective period | |
| Australian mortgage serviceability rules | APRA | Within its effective period | |
| Irish Central Bank mortgage lending limits | Central Bank of Ireland | Within its effective period | |
| Dutch mortgage financing burden norms | NIBUD | Within its effective period | |
| New Zealand debt-to-income restrictions | Reserve Bank of New Zealand | Within its effective period | |
| Swedish mortgage affordability rules | Finansinspektionen | Within its effective period | |
| Indian FOIR lending conventions | Reserve Bank of India | Within its effective period | |
| Sri Lankan debt service conventions | Central Bank of Sri Lanka | Within its effective period | |
| Finnish debt-servicing recommendation | Finanssivalvonta | Within its effective period | |
| Japanese repayment burden conventions | Japan Housing Finance Agency | Within its effective period | |
| French HCSF lending conditions | Haut Conseil de stabilite financiere | Within its effective period | |
| Spanish mortgage affordability conventions | Banco de Espana | Within its effective period | |
| United States real estate transfer taxes by state | Code of Alabama 40-22-1 | Within its effective period | |
| UK property transfer taxes: SDLT, LBTT and LTT | GOV.UK | Within its effective period | |
| German Grunderwerbsteuer by Land | Grunderwerbsteuergesetz section 11 | Within its effective period | |
| Canadian land transfer tax and registration fees by province and territory | Ontario Ministry of Finance | Within its effective period | |
| Australian stamp duty by state and territory | Revenue NSW | Within its effective period | |
| Irish stamp duty on residential property | Revenue | Within its effective period | |
| Dutch overdrachtsbelasting on homes | Belastingdienst | Within its effective period | |
| New Zealand: no stamp duty on buying a home | Inland Revenue | Within its effective period | |
| Swedish stamp duty on buying a house | Lantmateriet | Within its effective period | |
| Indian stamp duty and registration fees by state | Maharashtra Law and Judiciary Department | Within its effective period | |
| Sri Lankan stamp duty on a deed of transfer | Inland Revenue Department | Within its effective period | |
| Finnish transfer tax on buying a home | Vero.fi | Within its effective period | |
| Japanese registration and licence tax and real estate acquisition tax on buying a home | National Tax Agency | Within its effective period | |
| French droits de mutation a titre onereux on a home | DGFiP | Within its effective period | |
| Spanish ITP and AJD on buying a home, by comunidad autonoma | Ministerio de Hacienda | Within its effective period |
Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.
This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.