Compare your current loan with a new offer, accounting for both complete repayment terms and switching costs.
How to use the Loan Balance Transfer Savings calculator
Enter the current outstanding principal, current rate and remaining term. Add the new lender’s rate and proposed term, plus every switching cost paid upfront. Compare total savings as well as the two monthly payments. After calculating, select Monthly or Annual above the repayment table. Monthly shows each payment period; Annual groups the same payments by repayment year.
- Outstanding balance
- Principal owed now; past interest and payments are excluded.
- Current rate and months
- Remaining current-loan terms, not the original sanctioned term.
- New rate and months
- Proposed rate and full repayment term after transfer.
- Switching costs
- Enter processing, closure, legal, valuation and other applicable costs including taxes.
- Transfer effective month
- The month this modeled loan, transfer or prepayment starts. Defaults to the current month in India and can be changed.
Select Calculate, review the result and its breakdown, then change one input at a time to compare scenarios.
Formula and calculation method
Both loan paths start from the same outstanding balance and use their respective constant rates and terms. Net savings equal remaining payments on the current loan less payments on the new loan and entered switching costs. The table compares cumulative cash payments at common monthly checkpoints.
See the numbers in context
For ₹20,00,000 outstanding, the current 12% loan with 120 months remaining has EMI ₹28,694. Switching to 9% for 120 months gives EMI ₹25,335. With ₹30,000 in switching costs, net savings are approximately ₹3,73,084 and cumulative savings stay non-negative from month 9.
Illustrative inputs · rounded to the nearest rupeeWhat your result means
Positive net savings indicate a lower nominal total outflow across both completed terms. A negative value means switching costs more. Cost recovery reports the earliest month after which cumulative cash-flow savings remain non-negative, even if one loan finishes earlier.
Scenarios worth comparing
- Change one assumption at a time to understand its effect on payments and total cost.
- Compare a shorter term with the cash-flow flexibility of a longer term.
- Use the complete rate and fee quote rather than an advertised starting rate.
Assumptions and limitations
- Rates are constant nominal annual rates, with monthly reducing-balance interest and month-end EMI payments. At zero interest, EMI equals repayment principal divided by months.
- The schedule uses exact values internally and rounds displayed rupee amounts. Lender rounding, payment dates and daily accrual may differ.
- Only the entered upfront fees are included. Tax benefits, rate resets, missed payments, future fees and insurance are excluded.
- Charges and permission to transfer or prepay depend on your contract and applicable rules. The tool does not determine lender eligibility or fee legality.
- The first EMI is assumed in the month after the selected effective month, following any education-loan moratorium. End month includes the full repayment term; a prepayment can bring it forward. Calendar choices do not change the modeled EMI or interest.
Frequently asked questions
Can lower EMI mean higher total cost?
Yes. Extending the term can lower the payment while increasing total interest. Compare complete repayment paths rather than EMI alone.
Are switching costs added to the new loan?
No. They are paid upfront. If costs are financed, this simplified model is not an exact match to that offer.
What does cost recovery mean?
It is the first month after which cumulative savings never turn negative again in the modeled schedule. If final savings are negative, costs are not recovered.
Educational estimates only. Verify inputs, applicable rules and product terms before making decisions. Read the disclaimer.