Is refinancing worth it?
Refinance Savings Calculator
Calculate your monthly savings, break-even point, and total interest saved from refinancing. Enter your current loan details and new rate to see if refinancing makes financial sense.
Enter your details
Current mortgage
Remaining months on current loan
New refinance terms
Fees to complete the refinance
refinance verdict
✓ You save $787/month
Break-even: 1 yr 3 mo — then you save $260,183 total.
Current payment
$4,454
New payment
$3,667
Monthly savings
$787
Per month saved
Break-even
1 yr 3 mo
To recoup closing costs
Interest saved
$16,004
Total over new term
Net benefit
$4,754
After closing costs
Monthly payment comparison
How this calculator works
Refinancing (or remortgaging in the UK) replaces your current mortgage with a new one — ideally at a lower interest rate. The key question is whether the monthly savings outweigh the upfront cost of refinancing over your expected time in the home.
The break-even point is when your cumulative monthly savings equal your closing costs. If you plan to stay longer than the break-even period, refinancing is generally worthwhile. If you'll sell or move before break-even, you'll lose money.
Beyond monthly savings, refinancing may also let you change your loan term. Refinancing from a 30-year to a 15-year term can save significantly in interest even if the monthly payment increases. Conversely, extending your term reduces monthly payments but increases total interest.
Worked example
- 1Current monthly payment: NZ$2,640
- 2New monthly payment at 6.0%: NZ$2,098
- 3Monthly savings: NZ$542
- 4Break-even: NZ$7,000 ÷ NZ$542 = 13 months
- 5After break-even (remaining term): saves NZ$542 × (360 - 13) = NZ$188,000+
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for general guidance only and do not constitute financial advice. Mortgage rates, LVR restrictions, and lending criteria vary by lender and may be subject to RBNZ requirements. Consult a registered financial adviser before making property decisions.