Home loan balance transfer calculator

Agents often get queries about switching a home loan to a lower rate. This calculator shows, on the spot, whether the lower rate offsets the switching costs. You can plug in the current loan outstanding ₹39,39,000, current rate 8%, years left 15 years, new rate 7% and any fees ₹25,000 to see the new EMI ₹35,405, interest on the new loan ₹24,33,872, interest saved ₹4,02,892 and net saving after costs ₹3,77,892.

How to use the calculator

Open the balance‑transfer page on your phone.
Enter the loan amount (₹39,39,000) and the remaining tenure (15 years).
Fill the current interest rate (8%) and the offered new rate (7%).
Add all switching fees you have been quoted (₹25,000).
Tap ‘Calculate’ – the tool instantly shows the new EMI, total interest and net saving.

Open the calculator: Home loan balance transfer calculator

Worked example

Input	Value
Loan outstanding	₹39,39,000
Current rate (per year)	8%
Years left	15 years
New rate (per year)	7%
Switching costs (example)	₹25,000

Result	Value
New EMI	₹35,405
Interest on the new loan	₹24,33,872
Interest saved	₹4,02,892
Net saving after costs	₹3,77,892

Example inputs from a published worked example; results computed by the same code the calculator uses.

How it is calculated

Net saving = (current EMI × months left − outstanding) − (new EMI × new months − outstanding) − switching costs
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan outstanding, r = yearly rate ÷ 12 ÷ 100 and n is the number of months. Interest = EMI × months − P.

EMI = P × r × (1+r)^n ÷ ((1+r)^n‑1)

P is the loan outstanding (₹39,39,000).
r is the monthly rate: yearly rate ÷ 12 ÷ 100.
n is the total number of months left. Net saving = (current EMI × months left – ₹39,39,000) – (new EMI × new months – ₹39,39,000) – ₹25,000. The first part is interest you would pay if you stay, the second part is interest after switching, and the last part subtracts the fees.

Assumptions

Both rates stay the same for the whole tenure. Floating rates change with the lender’s benchmark.
Switching costs are what you enter. Ask both lenders for every charge in writing: processing fee, legal and valuation fees, stamp duty on the new mortgage, and any foreclosure charge.
RBI does not allow foreclosure charges on floating-rate home loans to individual borrowers (RBI circular of 2 August 2019, RBI/2019-20/29). Fixed-rate loans can have them.
Before income tax, and money saved later counts the same as money today.
This shows numbers only. It is not advice on whether to switch. Check the offer with the lender.

When it helps

Use this when a buyer asks if refinancing saves money, when a lender offers a lower rate, or when you compare multiple offers for a client. It helps you give a quick, data‑driven answer. The calculator does not consider tax benefits, future rate changes, or personal cash‑flow needs. For those aspects, advise the client to consult a financial advisor.

Frequently asked questions

क्या मैं केवल शुल्कों को बदलकर बचत देख सकता हूँ?

हाँ, टूल मौजूदा EMI, नई EMI और आपके द्वारा दर्ज किए गए ट्रांसफ़र खर्च को घटाकर शुद्ध बचत दिखाता है।

क्या यह टूल टैक्स या कानूनी सलाह देता है?

नहीं, यह केवल संख्यात्मक तुलना देता है। टैक्स या कानूनी सवालों के लिए अपने CA या वकील से पूछें।

क्या फ्लोटिंग‑रेट लोन पर फोरक्लोज़र चार्ज शामिल हो सकता है?

RBI के नियम के अनुसार व्यक्तिगत फ्लोटिंग‑रेट लोन पर फोरक्लोज़र चार्ज नहीं लगते; टूल इसे ध्यान में नहीं रखता।

Sources

For estimation only — verify with a professional. Rates and rules vary by state and change over time; last verified on 2026-10-10. This is not legal, tax or financial advice.

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