Short answer
The fee break-even is when cumulative payment or interest savings cover switching cost. After that, refinancing can build a net advantage if term and balance are compared fairly.
Important variables
- All switching and early-repayment cost
- Monthly payment difference
- Interest saving over equal remaining term
- Expected time keeping the new loan
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Worked example
€1,800 switching cost and €90 genuine monthly saving gives 20 months. If the loan ends earlier, the scenario does not reach break-even.
Break-even: What changes the result?
Higher fees move break-even later. A longer new term can lower payment without creating real interest savings.
Common mistakes
- Counting a lower payment as saving
- Comparing different terms
- Capturing only some fees
Terms in this guide
Sources & assumptions
- European Central Bank — Nominal and real interest rates (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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