Tools Explore credit cards
Tools

Balance transfer calculator

A lower rate elsewhere isn't automatically a good deal — processing fees, GST and other charges eat into the savings. See your real net savings and how long it takes to break even.

Your loan details

₹15,00,000
11%
10 years
8.5%
0.5%
₹5,000

Is it worth it?

Potentially worthwhile
Net savings over remaining tenure ₹0
Current EMI₹0
New EMI₹0
Monthly EMI difference₹0
Gross interest savings₹0
Switching costs₹0
Break-even period0 months
Compare with prepaying instead →
An estimate, not a lender offer. This calculator does not know whether you qualify for the proposed new rate, and does not recommend or endorse any lender. Real balance transfers can involve additional documentation, valuation, or insurance requirements not captured here. Confirm the actual rate, fees and eligibility with the new lender before switching.
Loan Prepayment Calculator Home Loan EMI Calculator FOIR Calculator Personal Loan Foreclosure Calculator Credit Card Minimum Due Calculator The real cost of the minimum due Personal loan prepayment: charges, savings and when it makes sense

Why a lower rate isn't automatically a win

Switching lenders for a lower rate — a "balance transfer" — genuinely reduces your interest cost. But it isn't free: most lenders charge a processing fee on the new loan, often with GST added, plus sometimes legal or valuation charges. If the switching cost is large relative to your remaining tenure, the fees can eat up years of interest savings before you come out ahead.

How this calculator works

Gross savings = (Current EMI × remaining months − outstanding) − (New EMI × remaining months − outstanding), both computed on the same tenure.
Switching cost = (Loan × Processing fee%) × (1 + GST%, if selected) + Other charges.
Net savings = Gross savings − Switching cost.
Break-even (months) = Switching cost ÷ monthly EMI difference.

This calculator keeps the tenure the same on both loans for a fair, apples-to-apples comparison — in practice, some lenders may offer a different tenure, which would change the numbers.

A worked example

₹15,00,000 outstanding at 11% p.a. with 10 years (120 months) left, transferring to 8.5% with a 0.5% processing fee plus 18% GST and ₹5,000 other charges:

Current EMI is about ₹20,663; the new EMI would be about ₹18,598 — a monthly saving of roughly ₹2,065. Gross interest savings over the remaining term come to about ₹2.48 lakh, against switching costs of about ₹13,850, for net savings of roughly ₹2.34 lakh — breaking even in under 7 months. On these numbers, the transfer looks clearly worthwhile.

What this calculator doesn't know

It can't tell you whether you'll actually be approved for the new rate — that depends on your credit score, income documentation and the new lender's policy. It also doesn't account for the time and paperwork of switching, or any prepayment charge your current lender might apply for closing the existing loan early.

Not sure whether to transfer at all? Is a balance transfer worth it? walks through the break-even calculation, two worked examples and the cases where transferring costs more than it saves.
FAQ

Common questions

What is a good break-even period for a balance transfer?
There's no universal rule, but the shorter the break-even relative to your remaining tenure, the more clearly worthwhile the transfer. A break-even of a few months against 10+ years remaining is generally a strong case; a break-even close to the remaining tenure itself is marginal at best.
Does my current lender charge a fee to let me transfer out?
For floating-rate loans to individual borrowers, RBI guidance generally prevents prepayment charges — but check your specific loan type and lender, since some loan categories and fixed-rate loans can still carry a foreclosure charge on the existing loan.
Will I definitely get the lower rate I've been quoted?
Not necessarily. Quoted rates are typically indicative and depend on your credit score, income verification and the new lender's underwriting. Confirm the actual sanctioned rate in writing before starting the transfer process.
Is a balance transfer the same as refinancing?
Yes, they describe the same thing — moving an existing loan to a new lender, usually for a better rate or terms. "Balance transfer" is the more common term for credit cards and personal loans in India; "refinancing" is used more for home loans.
Should I prepay instead of transferring?
If you have surplus funds, prepaying your existing loan avoids switching costs and paperwork entirely. If you don't have a lump sum but can access a genuinely lower rate elsewhere, a transfer may still make sense. See the prepayment calculator to compare.
Compare with prepayment Back to Tools