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Loan Balance Transfer Calculator

Check whether moving your loan to a lower rate saves money after every cost, and when the move pays for itself.

By Nitin Raturi · Last reviewed

Your worksheet

How to use the Loan Balance Transfer Calculator

Check whether moving your loan to a lower rate saves money after costs.

  1. Enter what you still owe and how many EMIs are left.
  2. Enter your current rate and the new lender’s rate.
  3. Enter every cost of moving.
  4. Read the net saving and the break-even month; open the table to see each year.

Good to know

  • Tap the ⓘ next to any field for a short guide to it.

Both EMIs run over the same months left. The move pays off only if the lower EMIs add up to more than the costs.

Outstanding loan

The principal you still owe today, from your lender’s latest statement.

How to fill it in

  • Type 30 lakh, 3000000 or 30,00,000. Allowed range: ₹10,000 to ₹100 crore.

Current interest rate

The yearly rate you pay now.

How to fill it in

  • Enter 1% to 25% a year.

Example

At 9.5% the default EMI is ₹31,326.74.

Months left

How many EMIs are left on the loan. The new loan keeps the same number.

How to fill it in

  • Enter 12 to 360 months.
  • More months left means more time for a lower rate to pay off.

New interest rate

The yearly rate the new lender offers.

How to fill it in

  • Enter 1% to 25% a year.

Example

At 8.5% the EMI falls to ₹29,542.19, saving ₹1,784.55 a month.

Keep in mind: A floating rate can change after you move. A low starting rate may not last.

Transfer costs

Everything you pay to move: the new lender’s processing fee, legal and valuation charges, and any charge from the current lender.

How to fill it in

  • Enter ₹0 to ₹1 crore. Ask both lenders for their charges in writing.

Example

The default ₹15,000.00 is recovered after 9 months of lower EMIs.

Estimated net saving from the transfer

₹3,06,219.67

Moving ₹30,00,000.00 from 9.5% to 8.5% changes the EMI from ₹31,326.74 to ₹29,542.19 over the same 180 months. The savings cover the transfer costs after 9 months.

Current EMI
₹31,326.74
New EMI
₹29,542.19
Saving each month
₹1,784.55
Total EMI saving
₹3,21,219.67
Transfer costs
₹15,000.00

Ask your current lender too: it may offer a lower rate on your existing loan, sometimes for a fee.

Same remaining tenure, fixed rates on a reducing balance, EMIs at the end of each month. Costs are paid once at the start; savings are added without discounting. Excludes prepayment charges you have not entered, tax effects and future rate changes.

Full schedule and CSV

Display rounds only for reading. CSV preserves full precision.

EMI savings and net position at the end of each year
YearEMI saved to date (INR)Net after costs (INR)
1₹21,414.64₹6,414.64
2₹42,829.29₹27,829.29
3₹64,243.93₹49,243.93
4₹85,658.58₹70,658.58
5₹1,07,073.22₹92,073.22
6₹1,28,487.87₹1,13,487.87
7₹1,49,902.51₹1,34,902.51
8₹1,71,317.16₹1,56,317.16
9₹1,92,731.80₹1,77,731.80
10₹2,14,146.45₹1,99,146.45
11₹2,35,561.09₹2,20,561.09
12₹2,56,975.74₹2,41,975.74
13₹2,78,390.38₹2,63,390.38
14₹2,99,805.03₹2,84,805.03
15₹3,21,219.67₹3,06,219.67

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Compare the two EMIs₹31,326.74 → ₹29,542.19Same 180 months, 9.5% against 8.5%.
  2. Step 2Add up the savings₹3.21 lakh₹1,784.55 a month for every month left.
  3. Step 3Take off the costs₹3.06 lakhAfter ₹15,000.00 of fees and charges.

A balance transfer moves your outstanding loan to a new lender at a lower rate. It pays off only if the lower EMIs add up to more than the cost of moving.

Worked example

Moving ₹30 lakh from 9.5% to 8.5% saves about ₹3.06 lakh after costs.

The default transfer
EMI
P × k ÷ (1 − (1 + k)^−n)
Net saving
(current EMI − new EMI) × n − costs
  • Poutstanding loan ₹30,00,000.00
  • kmonthly rate, yearly rate ÷ 12 0.79% → 0.71%
  • nmonths left 180
  1. Current EMI₹31,326.74
  2. New EMI₹29,542.19
  3. Total EMI saving₹3,21,219.67
  4. Transfer costs₹15,000.00
  5. Net saving₹3,06,219.67

The costs are recovered after 9 months of lower EMIs. After that, every month adds to the saving.

Reading the result

A small rate cut on a large loan with many months left can still be worth it.

  • 0.25% lower₹66,175
  • 0.5% lower₹1.47 lakh
  • 1% lower₹3.06 lakh
Net saving on the default loan for three rate cuts
  • 180 months left₹3.06 lakhPlenty of time for the lower rate to pay back the costs.
  • 36 months left₹35,265Same rates and costs, but much less time to save.

A transfer changes the lender. Prepaying or reshaping the loan are the other levers.

To see what a part-payment saves instead, use the loan prepayment calculator. The EMI calculator gives the new payment, and the APR calculator adds the new lender’s fees into one rate.

Common mistakes

  • Mistake: Looking only at the new rate.

    Instead: Add every cost of moving, from both lenders.

  • Mistake: Moving late in the loan.

    Instead: Check the net saving; with few months left, costs may outweigh it.

  • Mistake: Not asking your current lender.

    Instead: It may lower your rate without a transfer.

This calculator shows arithmetic on your inputs. It does not recommend any lender.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

What is a loan balance transfer?

It means a new lender pays off your outstanding loan and you repay the new lender instead, usually at a lower interest rate.

How does the calculator work out the saving?

It works out the EMI at both rates over the same months left, adds up the monthly difference, and subtracts every cost of moving that you enter.

What is the break-even month?

It is the first month in which the lower EMIs have added up to more than the transfer costs. After that, the move is saving you money.

What costs should I include?

The new lender’s processing fee, legal and valuation charges, and any charge from your current lender. Ask both lenders for their charges in writing.

Why are the savings not discounted?

The calculator adds savings as you would on paper. Over long periods, money saved later is worth a little less today, so treat the figure as an upper estimate.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 27 Oct 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release. Demand metrics remain unverified.

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