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Home Loan Refinancing Calculator

Compare your current loan against a new one — see the monthly saving, break-even point, and net saving after switching costs.

Current loan

New loan

Switching costs

Verdict

Refinancing looks worthwhile

Monthly saving

RM 165.63

Break-even: 19 months

Current monthly instalment
RM 1,667.50
New monthly instalment
RM 1,501.87
Monthly saving
RM 165.63
Interest saving
RM 49,688.02
Total switching cost
RM 3,000.00
Net lifetime saving
RM 46,688.02

Assumptions

  • Reducing balance (amortising) formula used for both loans.
  • Break-even months = total switching cost / monthly saving.
  • A longer new tenure lowers the monthly payment but can raise total interest.
  • Rates, fees and lock-in penalties vary by bank; this is an estimate, not an approval or advice.

This calculator provides estimates only. KiraSmart is not financial advice. Please verify with official sources or professionals before making decisions. Read full disclaimer

Information last reviewed: 2026-07-24 · Result type: user-input estimate

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Report an issue or outdated rate

When is refinancing worth it?

Refinancing means replacing your current home loan with a new one, usually to get a lower interest rate. It involves costs such as legal fees, valuation, and sometimes a lock-in penalty. Refinancing pays off when the interest savings exceed the switching costs within a reasonable time (the break-even point).

Watch the new tenure: a longer tenure lowers the monthly payment but can raise total interest paid. This is an estimate only — not a bank approval or financial advice.

Frequently Asked Questions

How is the refinancing break-even point calculated?
The break-even point is the estimated switching costs divided by the monthly instalment saving. It shows roughly how many months of savings are needed to recover the upfront cost of refinancing.
Does a lower monthly instalment always mean refinancing saves money?
No. Extending the loan tenure can reduce the monthly instalment while increasing the total interest paid. Compare the remaining interest, new-loan interest, switching costs, and how long you expect to keep the loan.
Which refinancing costs should I include?
Include relevant legal fees, valuation fees, disbursements, stamp duty, and any lock-in penalty or settlement charge. Enter the costs that apply to your own offer because they vary by loan and bank.

Quick calculator guide

How to use Home Loan Refinancing Calculator

See if refinancing your Malaysian home loan saves money — monthly saving, break-even, and net lifetime saving after switching costs. Results are educational estimates, not official approval or advice.

  1. 1

    Enter current and proposed loan terms

    Add outstanding balance, current rate and remaining term, then the new rate, tenure and all switching costs.

  2. 2

    Check savings, break-even and lifetime cost

    Compare current and new payments, monthly saving, break-even time and remaining total cost.

  3. 3

    Test rate, tenure and fees

    Change one proposed term at a time so a lower payment is not mistaken for a cheaper loan.

Before relying on the result

  • Verify lock-in penalties, legal and valuation fees, insurance effects and the lender's final offer.
  • Notice the rate date and assumptions stated on the page.
  • Confirm important decisions with the relevant bank, employer, or authority.
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