About the Home Loan Balance Transfer Calculator
This compares your existing home loan EMI to what it would be if you transferred the outstanding balance to a new lender at a lower interest rate, and shows the net savings after accounting for the balance transfer processing fee.
How it works
It calculates the EMI on your outstanding balance at both your current rate and the new lender's offered rate (using the standard reducing-balance EMI formula), over your remaining tenure. It compares total interest under each, subtracts the balance transfer processing fee from the interest saved, and shows the net savings and new monthly EMI.
Assumptions and behaviour
- Assumes the remaining tenure stays the same when you transfer — some borrowers extend or shorten tenure with the new lender.
- Assumes a fixed rate for both the old and new loan over the remaining tenure.
- The processing fee is applied as a percentage of the outstanding balance being transferred.
Limitations
- Doesn't include other charges some lenders levy, such as legal or valuation fees with the new lender, or a foreclosure fee on the old loan — verify total costs with both lenders before transferring.
- Assumes both loans use reducing-balance EMI — the standard method for Indian home loans.
- Not a loan offer — actual terms depend on your lender and credit profile.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
Get FreeMyTask as an app