Loan Refinance Calculator

A balance transfer moves your loan to a lender with a lower rate. It saves interest, but costs money to arrange: processing fees, legal and valuation charges, and stamp duty on the new mortgage.

Processing fee, legal and valuation charges, stamp duty on the new mortgage.
Results update as you type.

Net saving from switching

₹2,52,683

after switching costs

EMI now
₹26,106
EMI after switching
₹24,618₹1,487 less a month
Interest saved
₹2,67,683
Costs recovered in
11 months

Ask your current lender to match the new rate first. Many reduce it for a small fee, which saves the switching costs.

About this calculator

Enter your outstanding loan, remaining tenure, both rates and the switching costs. The calculator shows the new EMI, the interest saved, the net saving and how many months the costs take to recover.

How to use it

  1. Enter the outstanding loan and remaining months.
  2. Enter the current and new rates.
  3. Enter the switching costs.

The formula

Saving = (old EMI − new EMI) × remaining months − switching costs
EMI
worked out on the outstanding loan over the remaining tenure
switching costs
all one-time charges for the move

Worked example

₹25 lakh outstanding, 15 years left, 9.5% to 8.5%

  1. EMI falls from ₹26,106 to ₹24,618.
  2. Interest saved: ₹2,67,683; after ₹15,000 of costs, ₹2,52,683.
  3. The costs are recovered in 11 months.

What the result means

A rate cut of even 0.5% can be worth it on a large loan with many years left. Near the end of a loan, it rarely is.

Assumptions

  • The new loan keeps the same remaining tenure.
  • Both rates stay the same.

Limitations

  • Floating rates can change at either lender.

Frequently asked questions

Is a home loan balance transfer worth it?

Usually when the rate gap is at least 0.5% and many years remain. The calculator shows the break-even month.

Can my bank lower my rate instead?

Yes. Many banks reduce the rate for a small conversion fee, which avoids switching costs.

Is there a prepayment penalty on transfer?

Not on floating-rate loans to individuals for non-business use, under RBI rules.

For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.

Last reviewed on 1 October 2026. Found a mistake? Tell us.