Current loan and new offer
Leave 0 if there is none.
The currency is whatever you enter. Both loans are treated as level-payment (annuity) loans.
A lower rate is not automatically a win
Switching costs money before it saves any: an early-repayment charge on the old loan, arrangement and registration fees on the new one. If saving 120 a month costs 2,400 up front, you are behind for the first 20 months — and if the loan ends before then, you never catch up.
Break-even is the real test
This calculator divides the up-front cost by the monthly saving to find the month you pull ahead. Shorter than the time you expect to keep the loan: switch. Longer: stay. A planned sale or early repayment shrinks that window and can flip the answer on its own.
Watch the term trap
Stretching the remaining term makes the new payment look smaller than the old one even at the same rate. To compare rates honestly, enter the same remaining months for both loans; lengthen the term only when you deliberately want lower payments and accept paying interest for longer.
While you’re here — claim a crypto exchange bonus
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Frequently asked questions
Q. Which costs belong in the two cost fields?
Everything you pay because of the switch: any early-repayment or exit charge on the current loan, plus arrangement, valuation, registration and notary-type fees on the new one. Costs you would pay anyway do not count.
Q. How big does the rate gap need to be?
There is no universal number. A large balance and many remaining months make even half a point worth taking; a small balance close to maturity may not justify a whole point. That is exactly what the break-even month tells you.
Q. Why does the result assume equal monthly payments?
Both loans are modelled as standard annuities — the most common consumer form. If yours is interest-only or equal-principal, the totals will differ somewhat, though the break-even logic stays the same.