Loan refinancing
Is switching to a new rate worth it — one-off costs included
Benefit over the term
648 719,29 ₽
saving 708 719,29 ₽ minus costs 60 000,00 ₽
Payback of switching
8 months
the payment saving covers the one-off costs
When switching pays off
accumulated savingone-off costs
Current loan vs the new one
| Metric | Current loan | New offer | Difference |
|---|---|---|---|
| Monthly payment | 54 749,34 ₽ | 46 312,21 ₽ | -8 437,13 ₽ |
| Term | 84 mo | 84 mo | no change |
| Interest overpayment | 2 198 945,22 ₽ | 1 490 225,93 ₽ | -708 719,29 ₽ |
| Total paid | 4 598 945,22 ₽ | 3 890 225,93 ₽ | -708 719,29 ₽ |
Payment comparison between the loans — one-off costs not included.
The refinancing trap: a longer term lowers the payment but can raise the total interest. The benefit is counted over the whole term and net of one-off costs — a negative benefit shows in red.
Reference block: the method, a worked example and answers to common questions. It does not affect the calculation above.
How it is calculated
- The calculator reduces two loans to one annuity arithmetic: the current balance at the old rate over the remaining term versus the same balance at the offered rate over the new term. Both payments come from the mortgage calculator’s formula: PMT = K * i * (1+i)^n / ((1+i)^n - 1).
- The payment saving is the difference of the two monthly payments; the interest saving is the difference of the total overpayments. Both are exact differences of two amounts, with no intermediate rounding.
- The net benefit is the interest saving minus the cost of switching: fees, insurance, appraisal, state duties. That figure answers “is it worth doing”.
- The break-even is how many months of payment savings repay the switching costs: months = ceil(cost / monthly saving). If the new payment is not lower, the switch never pays back — and the calculator says so plainly.
Worked example
The figures the page opens with: a 2 400 000 ₽ balance over 84 months at 21% against an offer at 15% for the same term, switching costs of 60 000 ₽. The payment drops from 54 749.34 ₽ to 46 312.21 ₽ — 8 437.13 ₽ a month less.
Interest over the seven years falls by 708 719.29 ₽; net of the 60 000 ₽ costs the benefit is 648 719.29 ₽, and the costs pay back in the eighth month. This switch is clearly worth it.
Frequently asked questions
When is refinancing worthwhile?
The practical rule: a rate gap of 1.5-2 percentage points with a substantial term remaining. The bigger the balance and the longer the term, the smaller the gap that pays off. Enter your numbers — the net benefit and break-even answer better than any rule.
What belongs in the switching cost?
Everything the change of lender makes you pay: issuance and transfer fees, new insurance, and for a mortgage — collateral appraisal and re-registration. Collect them into the one field; without them the benefit looks rosier than it is.
Should I change the term while refinancing?
Keeping the term maximises the interest saving; stretching it cuts the payment harder but eats part of the benefit. Compute both: the new-term field is independent of the old one for exactly this.
Why would a bank offer a lower rate — what’s the catch?
Usually there is none: the bank is buying a proven borrower from a competitor. What deserves scrutiny is the full switching cost and mandatory insurance — put those into the costs field. “Loan comparison” ranks offers by their honest full cost.
Refinance or repay early?
Different levers, and they stack: a new rate makes every remaining ruble of debt cheaper, while early repayments shrink the debt itself. The “Loan contract” calculator prices early repayments on your schedule.
Does the new rate apply to the balance immediately?
Yes: the new loan repays the old one, and from the next payment interest runs at the new rate on the same balance. Your schedule starts afresh — which is exactly what the two-annuity comparison in the table reflects.
How many times can one loan be refinanced?
There is no formal limit — every switch is judged by the same arithmetic: benefit minus costs. In practice each next switch yields less, because the balance and the remaining term shrink; recompute the benefit here before each decision.