Home loan balance transfer calculator
Is moving a home loan to a lower rate worth the fees? Compare the loan as it is with the new offer. Everything is calculated on this device.
Net saving after switching costs₹3,77,892
New EMI₹35,405
- EMI now
- ₹37,643
- EMI lower by (each month)
- ₹2,238
- Interest left on the current loan
- ₹28,36,764
- Interest on the new loan
- ₹24,33,872
- Interest saved
- ₹4,02,892
- Months to recover the switching costs
- 12 months
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.
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.
For estimation only — verify with a professional.