Our refinance calculator lets you compare your current loan with a refinance proposal across three scenarios — basic refinance, cash-out, and construction or business lending. This guide explains what each field means and how to read the results.
Choosing the right tab
The calculator has three tabs at the top. Pick the one that matches your situation:
Basic Refinance — you want to switch to a lower rate or change your loan term without borrowing more.
Cash-Out Refinance — you want to borrow extra on top of your existing balance, for renovations, debt consolidation, or another purpose.
Construction / Business — you are funding a build or need working capital as part of the refinance.
Results update live as you type — you can switch tabs at any time to compare scenarios.
Current loan fields
Enter the details of your existing loan as it stands today.
Current loan balance — the amount still owing on your loan, in whole dollars. Check your most recent loan statement.
Current interest rate — your rate as a percentage to two decimal places (e.g. 6.29%).
Remaining loan term — how many full years are left on your loan.
Repayment type — Principal & Interest (you pay down the balance each month) or Interest Only (you pay interest only for a set period).
Current monthly repayment (optional) — leave this blank and the calculator will work it out. Fill it in if your statement shows a different figure, for example due to redraw or offset.
New loan proposal
Enter the details of the refinance offer you are comparing.
New loan amount (Basic tab only) — the amount you would borrow under the new loan.
New interest rate — the rate offered by the new lender, to two decimal places.
New loan term — the number of years for the new loan. Extending your term can lower monthly repayments but increase total interest paid.
Repayment type — choose Principal & Interest or Interest Only to match the offer.
Property & fees
These two fields drive the LVR calculation and break-even period.
Property value — your best estimate of the current market value. You can use an online estimate as a starting point; the lender will order their own valuation.
Total refinance fees — a combined figure for all switching costs. Use the 'Show detailed fee breakdown' toggle if you want to enter each cost separately.
If your new LVR is above 80%, the calculator will automatically estimate Lenders Mortgage Insurance (LMI) and add it to the fee total.
Reading the results
The summary panel shows the key numbers at a glance. Here is what each one means:
Monthly saving / extra cost — the difference between your current and new estimated repayments, rounded to the nearest dollar.
Annual saving — the monthly saving multiplied by 12.
Total refinance cost — the fees you would pay to switch, including discharge, application, and (if applicable) LMI.
Break-even period — how many months it would take for the monthly savings to cover the switching costs. If the new loan costs more, this shows 'No break-even'.
New LVR — Loan to Value Ratio, expressed as a percentage. Calculated as new loan amount ÷ property value. Above 80% typically triggers LMI.
LVR band — a factual description of the LVR range, not a risk rating.
Common things to check
Extending your loan term when refinancing — this can lower monthly repayments but significantly increase the total interest you pay over the life of the loan.
Factoring in all fees — including discharge fees, government charges, and any fixed-rate break costs if you are exiting a fixed loan early.
LVR above 80% — LMI can be a substantial cost and affects whether refinancing still makes financial sense.
Comparing the comparison rate, not just the headline rate — it includes fees and gives a more complete picture of the loan's true cost.
Advanced details
Click Show advanced details at the bottom of the calculator to access:
Stress test — shows your estimated repayments if interest rates rise by 1%, 2%, or 3%, so you can check whether the new loan remains manageable.
Total interest comparison — compares the total interest you would pay over the life of each loan.
Things to consider — factual notes about aspects of the scenario worth discussing with a broker.
Loan splits — lets you model a refinance broken into separate portions (e.g. existing balance + cash-out at different rates).
What these results mean
The calculator produces estimates based on the inputs you enter. Results are rounded to whole dollars. They do not account for your individual circumstances, lender serviceability assessments, or changes in interest rates after settlement. Use the numbers as a starting point for a conversation with a licensed broker — not as a final answer.
General information only This article is for general information purposes only and has been prepared without taking into account your objectives, financial situation or needs. It does not constitute credit advice, financial advice or a recommendation. You should consider whether this information is appropriate for your circumstances and obtain independent advice where necessary. K&M Solutions and Services Pty Ltd (ACN 649 305 126) is not a credit provider and does not hold an Australian Credit Licence. Enquiries may be referred to licensed credit brokers or referral partners. Credit assistance, if required, is provided by appropriately licensed credit representatives or Australian Credit Licence holders. This platform does not provide credit approval, a credit offer, financial advice, or legal advice.
