Home Loan Balance Transfer Calculator

How to use this home loan balance transfer calculator

1. Outstanding loan balance: the principal you still owe, from your lender’s latest statement.
2. Current rate and Remaining tenure: the rate you pay now and the years left, not the original tenure.
3. New lender’s rate and New loan tenure: start with the same tenure you have left, so you compare like with like.
4. Processing fee + legal & valuation charges: everything the switch costs, including the 18% GST on the processing fee.
5. Open "More options" to Add the costs to the new loan instead of paying them in cash, or to add a Top-up amount.

The results show your monthly EMI saving, the break-even month, the difference in lifetime interest, your net saving after costs and when you would be debt-free. The chart tracks your net position month by month, and the table compares both loans year by year.

How the saving and break-even are worked out

Break-even is the month when your net position turns positive: the EMIs you have saved, plus how much less you owe on the new loan, finally cover the costs. Counting the balance matters. At a lower rate, more of each EMI goes to principal, so you owe less on the new loan than you would on the old one. That is why break-even comes sooner than simply dividing the costs by the EMI saving.

How big a rate cut do you need?

The same ₹50 lakh with 17 years left at 9.5%, moved with ₹40,000 of charges and the same tenure:

Charges matter as much as the rate on small gaps. At ₹1 lakh of charges instead of ₹40,000, the 1-point cut still nets ₹5,27,183, but break-even stretches to 2 years 1 month. If you might sell or switch again before break-even, staying put is cheaper.

Watch the tenure reset

A new lender may offer a longer tenure, and the lower EMI looks attractive. In the worked example, taking 20 years instead of the 17 you have left raises the EMI saving to ₹6,097.87 a month. But ₹3,023 of that comes from stretching the loan, not from the lower rate, and you would pay ₹3,18,116 more interest overall.

There is a better way to use the longer tenure. Keep paying your current ₹49,489 a month on the new loan and you would be debt-free in 14 years 11 months, coming out ₹12,38,633 ahead. Paying above the EMI is a part-prepayment; see what it saves with the home loan prepayment calculator.

Charges, RBI rules and top-ups

The costs of a balance transfer typically include the new lender’s processing fee, with GST at 18% on it, and legal and valuation charges. Enter them together. As for the lender you are leaving: under RBI rules, lenders cannot charge foreclosure fees on floating-rate loans taken by individuals for non-business purposes. The current rules cover loans sanctioned or renewed from 1 January 2026, and earlier rules already barred these charges on floating-rate home loans. A fixed-rate loan may carry a charge, so add it if yours does.

If you add the charges to the new loan, you pay interest on them too: about ₹35,749 on ₹40,000 in the example. A top-up taken at the same time is new borrowing. A ₹5 lakh top-up turns the EMI saving into a rise of ₹1,567.03 a month, and the top-up alone adds about ₹4,46,858 of interest. To weigh two offers that differ in rate, fees and tenure, use the loan comparison calculator, and see your current EMI schedule in the home loan EMI calculator.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.