Compare your current EMI with a balance transfer offer and see the monthly saving, break-even month and net saving after switching costs.
Use this calculator when another bank or housing finance company offers to take over your home loan at a lower rate. Take the outstanding principal from your latest loan statement or the foreclosure letter, not the original loan amount. Enter the remaining tenure in years, and add up every cost of switching: the new lender's processing fee with 18% GST, legal and technical valuation fees, stamp duty on the new mortgage document where your state charges it, and any charge your current lender makes for the foreclosure letter or document retrieval.
How it works. The tool calculates the EMI on the same balance and remaining tenure at both rates. Monthly saving = current EMI − new EMI. Break-even = switching costs ÷ monthly saving, rounded up to whole months. Net saving = monthly saving × remaining months − switching costs.
Worked example (illustrative). ₹42 lakh outstanding with 16 years left: at 9.4% the EMI is about ₹42,372; at 8.6% it is about ₹40,339. You save about ₹2,033 a month, recover ₹35,000 of costs in 18 months and save about ₹3,55,000 net over 16 years. If the new rate were 9.15% instead, the saving falls to about ₹640 a month and break-even stretches to 55 months.
Limits. The result ignores the time value of money, future rate resets at either lender and any insurance the new lender bundles. Before switching, ask your current lender to reprice the loan; a conversion to its current repo-linked rate for a small fee may give most of the saving. See the balance transfer worked example.
EMI Calculations and Checklists
Calculate whether a home loan balance transfer saves money after fees, GST and stamp duty, with three worked cases, the step-by-step process and pitfalls.
Rates, Costs and 2026 Rules
How repo-linked and MCLR home loan rates differ, how to find your benchmark in your loan papers, and a worked example of switching an old MCLR loan.
