Comparing and switching
Fixed vs variable
Nobody can tell a client where rates go. What can be worked out is the break-even: the average variable rate over the fixed period at which both choices cost the same. That turns a forecast into a judgement about a threshold.
Your numbers
600,000
Result
Interest over the 3-year fixed period
Fixing saves $7,214
- Interest paid, fixed
- $104,024
- Interest paid, variable at today’s rate
- $111,239
- Fixed repayment
- $3,554.98
- Variable repayment today
- $3,709.93
- Difference each month
- $154.95
- Break-even average variable rate
- 5.89%
- Rate gap today
- 0.40%
If the variable rate averages above this across the fixed period, fixing was the cheaper choice.
A fixed loan usually restricts extra repayments and charges a break cost to exit. That flexibility is part of the price and does not appear in either figure.
What this does not tell you · It cannot forecast rates, and it does not price the break cost, the extra-repayment cap or the loss of a full offset that usually comes with fixing.
Put this on your own site
This calculator ships as part of a Finance OS build, on your brand and your booking link, so an enquiry that starts with a number ends in your calendar rather than on a bank’s website.