Thinking about refinancing? Use this calculator to compare your current loan with a better rate and see your potential savings in repayments and interest.
The Refinance Calculator calculates the difference in monthly repayment required, in respect of the loan parameters entered, namely loan amount, term and the current loan’s interest rate compared to the “best rate” interest rate. The Product Type (if available) selected determines the default interest rate for the “best rate” standard variable product. The customer can manually amend the current interest rate.
The Refinance Calculator also calculates the time saved to pay off the current loan and the amount of interest saved based on if the “best rate” repayment is increased by the difference between it and the current loan repayment amount.
These calculations are done at a monthly repayment frequency, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount, after the additional lump sum repayment amount or the effect of the offset account balance will be a partial repayment as required to reduce the loan balance to zero.
The time saved is presented as a number of years and months. It assumes the potential partial last repayment when calculating the savings.
This amount can only be approximated from the amount of time saved and based on the original loan details.