Loan balance transfer calculator
A lower rate only helps if the interest you save beats the cost of switching. Enter your outstanding loan, the rate you pay today, the new lender’s offer and the total cost of moving, and the calculator shows your new EMI, net saving and how long it takes to recover the switching cost.
By FinancePaisa Editorial Team · Research & editorialUpdated
₹
years
%
%
₹
New processing fee + legal, valuation and stamp duty on the new mortgage. Floating-rate loans to individuals have no foreclosure charge from the old lender.
Net saving after costs₹2,92,709
Current EMI₹40,571
New EMI₹38,806
Monthly saving₹1,765
Break-even1.3 years
Switching saves ₹1,765 a month. The ₹25,000 cost is recovered in 1.3 years, leaving a net saving of ₹2,92,709 over the remaining tenure.
- Interest if you stay
- ₹33,02,719
- Interest if you switch
- ₹29,85,011
- Interest saved
- ₹3,17,709
- Less switching cost
- −₹25,000
Worked example: ₹40 lakh with 15 years left
You owe ₹40 lakh at 9% with 15 years to go, and another lender offers 8.25%. Switching costs ₹25,000 in processing, legal and valuation fees.
Your EMI falls from ₹40,571 to ₹38,806, a saving of ₹1,765 a month. The switching cost is recovered in 1 yr 3 mo, and over the full tenure you save ₹2,92,709 after costs.
How big a rate gap do you need?
Same ₹40 lakh loan, 15 years left, ₹25,000 switching cost, current rate 9%:
| Rate reduction | Monthly saving | Break-even | Net saving over tenure |
|---|---|---|---|
| 0.25% | ₹593 | 3 yr 7 mo | ₹81,689 |
| 0.50% | ₹1,181 | 1 yr 10 mo | ₹1,87,595 |
| 0.75% | ₹1,765 | 1 yr 3 mo | ₹2,92,709 |
| 1.00% | ₹2,345 | 11 months | ₹3,97,024 |
0.25%
- Monthly saving
- ₹593
- Break-even
- 3 yr 7 mo
- Net saving over tenure
- ₹81,689
0.50%
- Monthly saving
- ₹1,181
- Break-even
- 1 yr 10 mo
- Net saving over tenure
- ₹1,87,595
0.75%
- Monthly saving
- ₹1,765
- Break-even
- 1 yr 3 mo
- Net saving over tenure
- ₹2,92,709
1.00%
- Monthly saving
- ₹2,345
- Break-even
- 11 months
- Net saving over tenure
- ₹3,97,024
When a transfer does not pay
Short remaining tenures and small gaps rarely work. A ₹15 lakh loan with 3 years left, moving from 9% to 8.75% with the same ₹25,000 cost, leaves you ₹18,724 worse off. In that situation, ask your current lender to reset your rate instead — many banks let existing borrowers move to their current rate for a small conversion fee.
What to include in switching costs
- Processing fee charged by the new lender (often waived or capped on transfers)
- Legal and technical (valuation) charges
- Stamp duty and registration on the new mortgage (varies by state)
- Foreclosure charge from your current lender — nil on floating-rate loans to individuals under RBI rules, but check fixed-rate loans
- Any top-up loan you take at the same time is a separate decision; leave it out of this comparison
Frequently asked questions
Advertisement