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Loan Balance Transfer Calculator

Whether moving a loan to a cheaper lender is worth the fees, holding the term constant so the rate is the only variable. Late in a loan there is little interest left to save.

Also called: home loan transfer calculator, switch lender.

₹
%
%
%
₹
Net saving
₹3,77,965

₹3,77,965 after ₹25,000 of transfer costs. The payment falls from ₹31,781 to ₹29,542, saving ₹2,239 a month, and you recover the costs in 11.2 months.

Current payment
₹31,781
New payment
₹29,542
Monthly saving
₹2,239
Interest saved before costs
₹4,02,965
Cost of transferring
₹25,000
Months to recover the cost
11.2
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The remaining term is kept the same for both loans, which isolates the rate difference. Processing fees are a percentage of the balance and there are usually legal and valuation charges on top. The timing matters more than the rate gap: interest is front-loaded, so a transfer in year two of a twenty-year loan saves a great deal and the same transfer in year fifteen saves very little.

net saving = the monthly saving over the remaining term, less the transfer costs
E
Monthly payment (currency)
n
Months remaining (months)
F
Fees (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a 1.25 point cut with 180 months left

Outstanding balance
₹30,00,000
Current rate
9.75%
New rate
8.5%
Months remaining
180
Processing fee
0.5%
Legal, valuation and other charges
₹10,000

Net saving₹3,77,965

0.5% of 30 lakh plus 10,000, worked by hand

Open this example

no rate difference saves nothing

Outstanding balance
₹30,00,000
Current rate
9.75%
New rate
9.75%
Months remaining
180
Processing fee
0.5%
Legal, valuation and other charges
₹10,000

Net saving-₹25,000

boundary

Open this example

Method and limits

What it assumes

  • The new lender takes over the same remaining term.

What it deliberately does not model

  • Foreclosure charges on the existing loan vary and can be significant on fixed-rate borrowing.
  • Any top-up taken during the transfer changes the comparison entirely.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is it worth transferring late in the loan?
Usually not. Interest is charged on the reducing balance, so most of it has already been paid by the second half of the term and there is little left to save against the fees.