Initial monthly cash-flow savingInitial payments after annual fee differences · 25 years remaining · 25 years on the new loan
- Current initial monthly repayment
- $3,372.91
- Proposed initial monthly repayment
- $3,218.45
- Total interest difference
- $46,338.26
- Estimated net cost saving
- $45,788.26
- Switching costs
- $550.00
- Switching cost break-even
- 3.6 months
What changes the result?Same starting balance · adjustable term and repayment types
Rate difference0.50 percentage pointsLower compared rate
Interest over term$46,338Potential interest saving
Calculation assumptions
- Both scenarios use the same starting balance with monthly payments; terms and repayment types can differ.
- Interest-only payments cover interest without reducing principal. After the selected period, P&I repays the balance over the remaining term.
- Totals include any principal still due at the end of a fully interest-only term.
- Each rate is assumed to remain unchanged for its selected term.
- Annual fees are spread evenly across each month.
- Break-even is the first time cumulative payment and fee differences recover switching costs. It accounts for the end of interest-only periods; later repayments may reverse the saving.
- Keeping your current repayment estimates the payoff using that payment and the new rate.
General information only — this calculator is an illustration, not a quote, approval or personal financial recommendation.
