Break-even calculator

Work out how many months it takes for your remortgage savings to cover the costs of switching. Include fees, cashback, and (if relevant) any early repayment charge.

Estimate monthly payments How to compare deals ERC guide

Enter your numbers

Your existing payment (or your best estimate).
Your new deal’s estimated payment.
Set to 0 if no product fee.
Cashback reduces your effective cost.
0 if included as “free legals”.
Many deals include this.
0 if fee-free broker or direct.
Only include if you will leave your current deal early.

How to use this result

If break-even is, say, 10 months, that means you need to keep the deal for at least 10 months before your monthly savings have covered your switching costs.

If you expect to remortgage again sooner than break-even, a lower-fee deal may be better even if the rate is slightly higher. This is why product fee vs rate matters.

FAQs

It is the point where the money you save each month has added up to cover the fees you paid to switch (and any ERC). After break-even, you are ahead in simple cash terms.

If switching before your current deal ends, yes. ERC is often the biggest switching cost and can completely change the decision.

Yes. Cashback is money you receive back, so you can subtract it from fees when calculating break-even.

If the new payment is higher, you are not breaking even via monthly savings. In that case, you would only switch for other reasons (e.g. certainty, term change, borrowing more).

Results

Monthly saving
£130.00
Calculated as current payment minus new payment.
Total switching costs
£999
Fees + ERC minus cashback.
Break-even
8 months
If you keep the deal longer than this, you are ahead in simple cash terms.
Next step: estimate your new monthly payment using the payment calculator.