How to use the balance transfer calculator
- Enter the outstanding principal, current rate and remaining tenure from your loan statement.
- Enter the new lender's rate and processing fee; GST is added automatically.
- Add other one-off costs such as legal, valuation and stamp duty charges.
- Optionally add a top-up loan to see its EMI.
- Read the verdict, net saving and break-even month.
How big a rate cut do you need?
| Rate cut | EMI falls by | Net saving | Break-even |
|---|---|---|---|
| 0.25 points (to 9.25%) | ₹601 | ₹74,633 | 4 yrs 8 mo |
| 0.50 points (to 9.00%) | ₹1,198 | ₹1,82,098 | 2 yrs 5 mo |
| 0.75 points (to 8.75%) | ₹1,791 | ₹2,88,787 | 1 yr 7 mo |
| 1.00 points (to 8.50%) | ₹2,379 | ₹3,94,693 | 1 yr 3 mo |
| 1.50 points (to 8.00%) | ₹3,543 | ₹6,04,123 | 10 mo |
₹40 lakh at 9.5% with 15 years left, 0.5% processing fee plus GST and ₹10,000 of other charges.
The saving shrinks as the loan ages
| Tenure left | Interest saved | Net saving |
|---|---|---|
| 3 yrs | ₹50,320 | ₹16,720 |
| 5 yrs | ₹87,511 | ₹53,911 |
| 10 yrs | ₹1,95,399 | ₹1,61,799 |
| 15 yrs | ₹3,22,387 | ₹2,88,787 |
| 20 yrs | ₹4,64,837 | ₹4,31,237 |
Same loan, moving from 9.5% to 8.75%, with the same costs.
How the saving is worked out
Both EMIs are worked out on the same outstanding principal and remaining tenure. The interest saved is the difference in total interest; the net saving subtracts the processing fee with GST and the other charges. Break-even is the first month in which the lower EMIs add up to more than those costs. To cut the tenure as well, keep paying your old EMI, or plan part-payments with the loan prepayment calculator.
Frequently asked questions
When is a home loan balance transfer worth it?
When the interest you save over the remaining tenure is clearly more than the cost of switching. On ₹40 lakh with 15 years left, moving from 9.5% to 8.5% cuts the EMI by ₹2,379 and saves ₹3,94,693 after a 0.5% fee plus GST and ₹10,000 of other charges. The fees are recovered in 1 yr 3 mo.
What costs are involved in a balance transfer?
The new lender's processing fee (often 0.25–1% of the loan, plus 18% GST), legal and valuation fees, and stamp duty on the new mortgage in some states. Your old lender cannot charge a foreclosure fee on a floating-rate loan to an individual. Enter all of these as switching costs.
Is there a prepayment penalty when I switch?
Not on floating-rate loans to individuals for non-business use: RBI's Pre-payment Charges on Loans Directions, 2025 bar such charges for loans sanctioned or renewed from 1 January 2026, and floating-rate home loans were already exempt. Fixed-rate loans can carry a foreclosure charge if the loan agreement allows it; add it to other charges.
Should I ask my current bank to cut my rate first?
Yes. Most banks will reprice an existing floating-rate loan to their current rate for a conversion fee, which is usually far cheaper than a full transfer. Use the new lender's offer as leverage.
What is a top-up loan with a balance transfer?
The new lender may offer extra money on top of the transferred amount, often at a slightly higher rate. It is new borrowing, so this calculator shows its EMI separately and leaves it out of the saving.
Is a balance transfer worth it late in the loan?
Usually less so. Most of the interest is paid in the early years, so with only a few years left there is little interest left to save while the fees stay the same. The table below shows how the saving shrinks with the remaining tenure.