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Loan Balance Transfer Calculator

A lower rate from another lender only helps if the interest you save is more than the cost of switching. Enter your outstanding loan, the new rate and the charges, and the calculator shows the new EMI, the net saving and how many months it takes to recover the costs.

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Calculator and results

Moving ₹30,00,000 from 9.5% to 8.5% changes the EMI from ₹31,327 to ₹29,542 over 15 years. You save ₹3,21,129 in interest, and after ₹25,000 of switching costs you are ₹2,96,129 better off, breaking even in month 11.

Your current loan

₹

The principal still owed, from your latest loan statement.

%

The new lender's offer

%

The rate in the new lender's offer or sanction letter.

After the transfer

Starts at the months left on your current loan.

Cost of switching

%

As quoted by the new lender, including GST if it is charged on top.

₹

If the lender caps the fee in rupees, enter the cap. Leave at 0 for no cap.

₹

Legal and valuation fees, MOD or mortgage registration charges and any other charges, as quoted.

₹

RBI rules bar pre-payment charges on floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026. Check your sanction letter and enter any charge that applies.

Net saving

₹2,96,129

after all switching costs

Break-even

Month 11

costs recovered from interest saved

Current EMI

₹31,327

for 15 years

New EMI

₹29,542

for 15 years

Interest saved

₹3,21,129

₹26,38,757 vs ₹23,17,628

Switching costs

₹25,000

fee ₹15,000

Stay or switch

Current loan against the transferred loan
OptionRateEMITenureInterestCosts
Stay with current lender9.5%₹31,32715 years₹26,38,757₹0
Transfer to new lender8.5%₹29,54215 years₹23,17,628₹25,000

Amortisation Schedule

How each instalment splits between interest and principal over time.

Saved scenarios stay in this browser only. No sign-up.

Net saving

₹2,96,129

New EMI ₹29,542
What it is:
A calculator that compares staying with your current lender against moving the loan to a lower rate.
What it calculates:
The old and new EMI, interest saved, net saving after all switching costs, and the month the switch breaks even.

Key Assumptions

  • Both rates stay fixed for the rest of the loan; most home loans in India are floating and will move.
  • Switching costs are paid upfront and not added to the new loan.
  • No prepayments are made on either loan.
  • Any GST on fees should be included in the figures you enter.

How does the Loan Balance Transfer Calculator work?

The current loan is worked out on the outstanding principal, your current rate and the months left, using the standard reducing-balance EMI. That gives the EMI you pay now and the interest still to come if you stay.

The new loan is the same outstanding principal at the new rate. Choose a new tenure and the EMI is recalculated, or keep the same EMI and the loan simply ends sooner at the lower rate.

Switching costs are the new lender's processing fee (a percentage of the amount transferred, with an optional rupee cap), legal, valuation and MOD or registration charges, and any foreclosure charge on the old loan. They are treated as paid from your pocket, not added to the loan.

Net saving is the interest saved minus those costs. The break-even month is when the interest saved so far first covers the costs and stays ahead; if you might sell or prepay before then, the switch does not pay.

Loan Balance Transfer Calculator formula

Net saving = (I_old - I_new) - (F + C + X); F = min(P x f / 100, cap)

I_old
= interest left on the current loan at the current rate
I_new
= interest on the new loan at the new rate and tenure
P
= outstanding principal transferred
f
= processing fee, percent of P
F
= processing fee in rupees, capped if the lender caps it
C
= legal, valuation, MOD and other one-time costs
X
= foreclosure charge on the old loan, if any

Both EMIs use EMI = P x r x (1 + r)^n / ((1 + r)^n - 1). Break-even is the first month from which cumulative interest saved stays at or above F + C + X.

Loan Balance Transfer Calculator: worked example

₹30,00,000 left over 15 years, moved from 9.5% to 8.5%

Current EMI
₹31,327
New EMI, same tenure
₹29,542
Interest saved
₹3,21,129
Processing fee (0.5%) + other costs
₹25,000
Net saving
₹2,96,129
Break-even
Month 11
Or keep the same EMI: loan ends in
13 years 5 months
Net saving with the same EMI
₹5,79,726

Loan Balance Transfer Calculator: frequently asked questions

When is a home loan balance transfer worth it?
When the interest you save over the time you expect to keep the loan is clearly more than all the switching costs. A rate gap matters more on a large balance with many years left. Near the end of a loan most of each EMI is principal, so even a big rate cut saves little.
Can my bank charge a foreclosure fee when I move the loan?
Under the RBI (Pre-payment Charges on Loans) Directions, 2025, banks (other than payments banks), co-operative banks, NBFCs and All India Financial Institutions may not levy pre-payment charges on floating-rate loans to individuals for purposes other than business. These Directions apply to loans sanctioned or renewed on or after 1 January 2026. Fixed-rate loans, business loans and older loans can have different terms, so check your sanction letter and enter any charge here.
Should I keep the same EMI or take a lower EMI?
Keeping the same EMI at the lower rate closes the loan sooner and saves the most interest. Taking a lower EMI over the same tenure frees up cash every month but saves less. Stretching the tenure beyond what is left can mean paying more interest overall even at a lower rate.
What charges should I include?
The new lender's processing fee, legal and technical valuation fees, the cost of creating the mortgage (MOD or registration, which varies by state), any foreclosure charge from your current lender, and GST where it applies. Ask both lenders for these in writing before you decide.
Is it better to ask my current bank to reduce the rate?
Often, yes. Many lenders will reset the rate for an existing borrower for a conversion fee, which is usually simpler than moving. Enter that fee as the cost and the offered rate as the new rate to compare it on the same basis.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated