Home loan balance transfer calculator

How this estimate works

Net saving = old remaining interest − new remaining interest − switching costs. Cash break-even is the first month when cumulative EMI savings cover those upfront costs.

Start with the outstanding loan balance and the months still to run. To compare fairly, keep the remaining tenure identical in both scenarios. A new lender may offer a longer term which lowers EMI while increasing lifetime cost. That is a different decision and should be tested separately. Here, the entered rates apply throughout the same remaining period.

Switching costs are paid upfront in this model. Enter processing fees including applicable tax, legal and technical valuation expenses, mortgage stamp and registration charges, and any other confirmed closure costs. Do not substitute a purchase conveyance duty for the duty on a new mortgage. Obtain an itemised quotation and ask which costs remain payable if the transfer does not proceed.

The calculator compares remaining interest and subtracts the total switching cost. It also compares monthly instalments to show how long cash savings take to recover the initial expense. A break-even month is reported only within the remaining loan term. If there is no recovery within that term, the result says so plainly. A higher new rate or a large fee can make net saving negative.

The calculation assumes the outstanding amount transfers in full and fees are not added to the new principal. It excludes overlaps in interest while documents move, changing floating rates and the value of your time. The linked RBI rule helps you check prepayment terms, but actual applicability depends on product and dates. Ask your existing lender whether a rate conversion is possible, then compare written offers using total cash cost and reset terms rather than the advertised rate alone.

Use the month when the transfer actually starts as the comparison date. A headline offer may expire while the lender evaluates the documents, and a current balance can change during that interval. Recalculate from the final statements before authorising the switch. Keep both lenders’ closure, release and receipt documents so that the handover of the security can be followed independently.

Sources and limits

• The published directions prohibit prepayment charges for floating-rate non-business loans to individuals, with or without co-obligants, sanctioned or renewed from 1 January 2026. For dual-rate loans, the rate type at prepayment matters. Check the operative lender terms. Reserve Bank of India, checked 2026-11-12. Effective basis: 2026-01-01.
• Reducing-balance EMI formula, monthly interest and constant-rate repayment assumptions. Kotak Mahindra Bank, checked 2026-11-12. Effective basis: not stated by publisher.

Questions about this tool

This is general information, not legal, tax or financial advice. Check with a qualified professional for your case.

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