Remortgage Calculator
Estimate your new monthly payment, total interest and potential monthly savings when switching to a new mortgage deal.
Overview
A remortgage calculator helps you compare your current mortgage with a potential new deal using your remaining balance, term, current rate, new rate and fees. It can show whether a lower rate may reduce your monthly payment and how the overall cost could change over time.
How it works
The calculator estimates your current and new monthly repayments using a standard amortizing mortgage formula based on the balance, interest rate and term. It then compares the new payment with your current payment and adds remortgage fees to estimate the overall cost difference. This gives a practical way to compare staying on your current mortgage with switching to a new deal.
How to use this calculator
- 1Enter your remaining mortgage balance.
- 2Add the number of years left on your current mortgage.
- 3Enter your current annual interest rate.
- 4Enter the new remortgage interest rate and new term.
- 5Add any remortgage fees, then review the estimated monthly payment and savings.
Example Calculation
Remaining mortgage balance
$250,000
Remaining term
20
Current interest rate
6%
New remortgage interest rate
5%
New mortgage term
20
Remortgage fees
$1,500
New monthly payment
$1,616
With a remaining balance of 250000 over 20 years, reducing the rate from 6% to 4.75% could lower the monthly payment by around 180 to 200, although fees will reduce the total benefit.
Frequently asked questions
What does this remortgage calculator estimate?
It estimates your new monthly payment, potential monthly savings and the overall cost difference between your current mortgage and a new remortgage deal.
Do remortgage fees matter when comparing deals?
Yes. Fees can reduce or even remove the savings from a lower interest rate, so they should be included in any comparison.
Can I change the mortgage term when I remortgage?
Yes. Many borrowers choose a shorter or longer term, but changing the term can affect both monthly payments and total interest paid.
Does a lower interest rate always mean remortgaging is cheaper?
Not always. Fees, early repayment charges and a longer term can mean a lower rate does not automatically produce lower overall costs.
Is this calculator for fixed and variable rate mortgages?
It can be used for either as a simple estimate, but it assumes the rate entered stays the same over the term, which may not happen with variable deals.
Explore Related Calculators
Assumptions and warnings
Assumptions
- This calculator assumes both mortgages are standard repayment mortgages with monthly payments.
- Interest rates are assumed to stay the same for the full term entered.
- Remortgage fees are added as an upfront cost and included in the new deal's total cost.
- Results are estimates and do not include early repayment charges, cashback, incentive offers or changing rates unless reflected in your inputs.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Check for early repayment charges and lender fees before deciding to remortgage.
- Speak to a qualified mortgage adviser before making major borrowing decisions.