Finance & Irish taxes · Calculator companion · By K Imports
Refinancing cost break-even: practical guide
This guide explains how to use the Count.ie refinancing cost break-even. Find when a recurring payment saving repays switching costs. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Refinancing cost break-even calculatorWhat to prepare
- Have the figures for current monthly cost (€), new monthly cost (€) and total switching costs (€) ready, from a dated document, with the period (annual, monthly or per transaction) that each input expects.
- Note the date of the transaction, since this model has no year selector and fixed rates may have changed.
- Separate known facts from assumed rates before relying on the headline result.
Understand the inputs
The calculation method
Net upfront cost divided by monthly saving, rounded up to a full month.
Worked example
Illustrative inputs and their result.
Example inputs
- Current monthly cost (€)
- 800
- New monthly cost (€)
- 740
- Total switching costs (€)
- 1800
- Unconditional cashback (€)
- 500
- Comparison period (months)
- 240
Calculated example result
- Break Even Months
- 22
- Term Saving
- €13,100.00
How to interpret the result
Use equal comparison periods. Distinguish a tax saving, a tax bill, cash received and money remaining: they are not interchangeable. An estimate does not establish eligibility, filing compliance or when a refund will be paid.
Change one input of refinancing cost break-even at a time and record the result; keep a record of the year, date and assumptions so a change in the result can be explained.
Common mistakes to avoid
- Do not mix tax years or apply a newly announced measure to an earlier transaction.
- Avoid counting an allowance, credit, contribution or loss twice.
- Check exclusions and personal circumstances before relying on the headline result.
Assumptions and sources
Use equal comparison periods. A longer debt term can reduce monthly payments while increasing lifetime cost.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.