Loans & debt · 1 min
Switching to a cheaper loan costs money before it saves any. Enter both loans and the switching costs; the calculator shows the month the savings overtake the fees, and what you keep in total if you stay the course.
Arrangement fee, valuation, legal costs, any exit fee on the old loan.
Selling or switching again before break-even means the fees were paid for nothing.
Everything is calculated in your browser as you type. Nothing you enter is sent or stored, and no account is needed.
Pays off in 20 months.
20 months
when the fee is fully recovered by lower payments
| Current monthly payment | — |
| New monthly payment | — |
| Monthly saving | — |
| Break-even month | — |
| Saved over the years you'll keep it | — |
| If the new rate is | Monthly saving | Break-even |
|---|---|---|
| — | — | — |
| — | — | — |
| — | — | — |
Match the comparison terms. A lower payment achieved by stretching the term back to 25 years is not a saving; this page keeps the remaining term equal so the rates compete fairly.
Check the old loan's exit fee and the new loan's tie-in period. An early repayment charge on the loan you are leaving belongs in the switching costs box.
If you might sell or move before the break-even month, the switch loses money. The 'how long you'll keep it' input is there to force that question.
Everything below is calculated from your inputs. Nothing is fetched or stored.
payment(r) = standard amortisation at rate r over the remaining term
break_even = costs / (payment(old) − payment(new)), in months
total_saved = monthly saving × months kept − costs
Both payments use the same balance and the same remaining term, so the difference is purely the rate. Break-even divides the switching costs by that monthly difference; everything after that month is yours.
Limitations. Fixed-rate periods that end mid-way, offset features and rates that change with loan-to-value are outside this page. For a fair offer comparison, use each lender's full fee list, not the headline rate.