Loan Balance Transfer Calculator India — FY 2025-26
Calculate how much you can save by transferring your home loan to another bank at a lower interest rate. See EMI reduction, total interest saved, break-even period, and get a clear recommendation. A 0.50% rate reduction on a ₹35 lakh loan can save over ₹2 lakh in interest. Updated with March 2026 bank rates.
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How to Use This Calculator
Transfer Savings tab
Enter your outstanding loan amount, remaining tenure, current interest rate, and the new rate offered by the competing bank. The calculator shows your EMI reduction, total interest saved, net savings after transfer costs, and break-even period. Use "More options" to adjust the one-time transfer costs (processing fee + legal + stamp duty).
Transfer + Top-Up tab
Same as Transfer Savings, but with an additional top-up loan amount and its interest rate. This models the common scenario where you transfer your loan AND take additional funding for home renovation, education, or other needs. The calculator shows the combined EMI, blended rate, and total interest breakdown.
Should I Transfer? tab
Enter your scenario and get a clear verdict: Strongly recommended, Recommended, Worth considering, Marginal benefit, or Not recommended. The decision engine evaluates rate differential, remaining tenure, outstanding amount, and break-even period to give you an actionable recommendation.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a friend, financial advisor, or save it for later.
The Formula
Balance transfer savings are calculated using the standard EMI formula (reducing balance method):
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Where:
P = Outstanding principal (loan balance)
r = Monthly interest rate (annual rate / 12 / 100)
n = Remaining tenure in months (years × 12)
Interest Saved:
Total interest = (EMI × n) − P
Interest saved = Interest at old rate − Interest at new rate
Break-Even Period:
Break-even months = Transfer costs / Monthly EMI saving
Net Savings:
Net savings = Total interest saved − Transfer costs
Blended Rate (Transfer + Top-Up):
Blended rate = (BT amount × BT rate + Top-up amount × Top-up rate) / Total loan amount
All calculations use the reducing balance method, which is the standard for home loans in India. The EMI formula assumes equal monthly instalments throughout the tenure. Actual EMI may vary slightly based on the bank's rounding methodology.
Example
Rajesh — Mumbai IT professional, transferring ₹35,00,000 home loan from 9.25% to 8.50%
Rajesh took a home loan of ₹50,00,000 five years ago at 9.25% for 20 years. His outstanding principal is now ₹35,00,000 with 15 years remaining. He gets an offer from another bank at 8.50%. Transfer costs are estimated at ₹35,000.
Step 1: Current vs New EMI
Step 2: EMI comparison
Step 3: Total savings
Step 4: Break-even
Rajesh saves ₹2.39 lakh in total interest after accounting for ₹35,000 transfer costs. His EMI drops by ₹1,522/month, and he recovers the transfer costs in 23 months. With 15 years remaining, the transfer is clearly beneficial.