Refinancing and repricing calculator: savings, costs and break-even
Refinancing or repricing pays when the interest saved outweighs the fees and penalties of switching. Enter your loan, both rates and the costs to compare the two over the same months, counting the balance each still owes. A lower monthly payment from a longer tenure is shown separately, because it is not a saving.
Compare your loan with a refinancing or repricing offer
Enter the outstanding loan, the remaining tenure, the current rate, the proposed rate, the fees (0 if none), the penalties (0 if none) and the subsidies (0 if none) to see a result.
What a rate cut is worth
| Cut (percentage points) | From 4% | From 3.5% | From 3% |
|---|---|---|---|
| 0.25 | S$490.40 | S$488.86 | S$487.27 |
| 0.5 | S$980.05 | S$976.95 | S$973.68 |
| 0.75 | S$1,468.91 | S$1,464.22 | S$1,459.24 |
| 1 | S$1,957.00 | S$1,950.63 | S$1,943.87 |
Same tenure, no costs. Set the saving against the fees and penalties of switching: the calculator does this and finds the break-even month.
A worked example
A S$600,000 loan with 20 years left, repriced from 4% to 3% with S$3,000 of fees and a S$2,000 subsidy, cuts the instalment from S$3,635.88 to S$3,327.59. Over three years the interest falls from S$68,431.25 to S$51,038.26, a net saving of S$16,392.99 after costs, if both rates hold. The interest saved covers the S$1,000 net cost in month 3.
Questions
Why not compare the total interest over each loan's life?
Because a longer tenure charges more interest in total but lowers the monthly payment, and a shorter one does the reverse. Comparing the same months, and counting the balance each loan still owes at the end, measures the cost of the switch fairly.
Does a lower monthly payment mean a cheaper loan?
Not necessarily. Stretching the tenure lowers the payment by repaying the loan more slowly, which usually costs more interest. The calculator shows how much of the change comes from the tenure.
What does the break-even month mean?
The month in which the interest saved so far, added up from the switch, first recovers the fees and penalties less any subsidies. It is measured in interest saved, not in lower monthly payments, because a lower payment can come from a longer tenure that repays the loan more slowly.
Where do the rates and fees come from?
From you. Prevo does not know a bank's packages, fees, lock-in periods or clawback terms, or whether a loan would be approved, so the result is indicative and assumes both rates hold.
Is this a loan offer or advice?
No. It is arithmetic on the figures you enter. A lender decides whether to lend, on what terms and at what rate, and the regulatory limits are checked by the LTV and TDSR calculators.
Arithmetic on the figures you enter: no policy rule is applied. Confirm the terms with your lender, lawyer or the relevant agency before you act. All calculators