Editable planning tool

Refinance break-even estimate

Change the illustrative values. Nothing you enter is sent or stored; measurement records only the tool name and formula version.

Scope: payment-only break-even. This does not compare remaining tenure, total repayment, total financing cost or the economic value of refinancing.

Results will appear here after calculation.

Formula and assumptions

Formula ID: refinance-break-even@1.1.0

Calculations use unrounded intermediate values. Ringgit and percentage outputs are rounded to two decimal places; break-even months are rounded up. A displayed monthly amount multiplied by tenure may therefore differ slightly from the displayed total.

  • Current and proposed payments remain unchanged.
  • Upfront refinance costs are paid immediately.
  • Ringgit inputs accept no more than two decimal places.
  • Tax, opportunity cost, penalties and tenure changes are excluded.

Answer first

Enter current and proposed payments plus valuation, legal, discharge, setup and applicable lock-in costs from dated documents. A simple payment break-even is total switching cost divided by a positive monthly saving, rounded up. If the proposed payment is not lower, show “no payment-only break-even”. Then compare remaining tenure and total repayment: extending tenure can lower the instalment while increasing lifetime cost.

Malaysian example

RM7,500 of entered costs divided by RM250 monthly saving gives 30 months. If the borrower expects to sell sooner, the payment-only case does not recover those costs.

Next steps

Important

Educational information only. This content is not financial, legal, tax, insurance or Shariah advice and does not predict approval.