Refinance Breakeven Calculator
Refinancing means paying a settlement figure upfront. Use this calculator to find out how many months of lower payments it takes to break even on that cost, and how much you save after 12 and 24 months.
Frequently asked questions
What is a refinance breakeven point?
The breakeven point is the number of months it takes for your cumulative monthly savings to equal the upfront settlement cost. Before breakeven, you are still "in the red" from the settlement. After breakeven, every month of lower payments is pure savings.
What settlement figure should I use?
Use the figure provided by your current lender. Under the Consumer Credit Act, your lender must supply a settlement figure within 12 working days of your request. This figure includes the outstanding balance minus any interest rebate (the 58-day rule). Use our early settlement calculator if you do not have one yet.
Does this calculator include fees?
This calculator uses the settlement figure you enter, which should include any early repayment charges. If your new lender charges an arrangement fee, add it to the settlement figure before entering it here for an accurate breakeven calculation.
Is a short breakeven period always better?
Generally yes — a shorter breakeven means you start saving sooner. However, also consider the total term of the new loan. If the new term is much longer, you may save monthly but pay more overall. Use our car refinance savings calculator for a full comparison.
What if my new payment is higher than the old one?
If the new payment is higher, there is no breakeven — you are paying more each month. This can happen if you refinance to a shorter term. In that case, the benefit is paying off the car sooner and reducing total interest, not monthly savings. Use the refinance savings calculator instead.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.