Refinance Savings Calculator Singapore: Interest, Fees and Cash Recovery

Compare your current mortgage with a replacement at the same remaining tenure. The rates and fees below are illustrative. Use the outstanding balance today and a horizon that matches your actual package or sale plans.

A worked refinance example

Assume S$700,000 outstanding, 25 years left, a current 3.5% rate and a new 2.9% rate. Both remain constant for a 36-month scenario. Payments fall from S$3,504.36 to S$3,283.19. With S$2,500 switching costs, interest savings of S$12,312.07 leave S$9,812.07 net economic savings.

Lower payments release S$7,962.46 over those 36 months. After fees, cash released is S$5,462.46; the new loan balance is also S$4,349.60 lower. Those two components reconcile to the same S$9,812.07 economic gain, subject to display rounding.

Cumulative interest savings recover the fee in month 8. Lower monthly payments replenish the initial fee cash in month 12. Neither measure discounts money over time or predicts future rates.

How the comparison works

Both options start with the same principal and remaining tenure. Payments are monthly on a reducing balance using annual rate ÷ 12. Rates stay constant throughout the scenario. Interest and upfront fees are costs; repaid principal reduces debt. The comparison stops at your chosen horizon.

Net economic saving = interest saved − additional fees. It also equals lower payments accumulated over the horizon, minus additional fees, plus the improvement in remaining loan balance. These are two views of the same saving; do not add them together.

The economic break-even is the first month within the selected horizon when cumulative interest savings cover the extra fees. The cash-recovery figure divides extra fees by the reduction in monthly payment and rounds up. It answers a different question: how long until lower payments replenish the upfront cash. Neither discounts future money or predicts changing rates.

Scope and useful stress cases

Include legal costs, valuation, applicable mortgage duty, subsidy clawbacks and redemption penalties once each. Enter costs net of confirmed subsidies; the model treats them as paid upfront. It does not finance the fees into the new loan.

Rates stay fixed throughout each scenario. Future resets, tax effects, discounting, extra repayments and later exit penalties are excluded. If you plan to leave during a lock-in, include the quoted cost or run a shorter scenario. The new loan uses the same remaining tenure, so a lower payment cannot be manufactured by extending the term.

Try a higher new rate, a 12-month horizon and a larger fee estimate. A “not reached” break-even means interest savings do not recover extra fees inside the selected horizon. If there are no extra fees to recover, still inspect whether the new option’s ongoing cost is lower.

Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections