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Balance transfer calculator
Transferring to a lower rate only helps if the saving beats the fees. Enter your current loan and the offer, then choose whether you want to close sooner or pay a smaller EMI.
Your current loan
₹35.00 L
240 months (20 years)
The transfer offer
Must be within 240 months
Legal, valuation, stamping, insurance
Net saving after all charges
₹10.31 L
Gross interest saved ₹10.51 L
New closing date
17y 4m
Feb 2044
| Outstanding balance on transfer date | ₹33,76,511 |
|---|---|
| Existing interest rate | 9.5% p.a. |
| New interest rate | 8.4% p.a. |
| Transfer month | Month 24 |
| Remaining tenure at transfer | 18y 1m |
| EMI after transfer | ₹32,625 |
| Processing fee | ₹15,000 |
| Other transfer expenses | ₹5,000 |
| Gross interest saving | ₹10,50,634 |
| Net saving after expenses | ₹10,30,634 |
| Break-even month | Month 30 |
| Revised loan closing | 17y 4m (Feb 2044) |
On these numbers the transfer saves ₹10,30,634 after the ₹20,000 of charges, breaking even by month 30.
Keep the EMI or reduce it — why it matters
A lower rate reduces the interest charged each month. What happens to that saving depends on the option you pick.
Keep current EMI: the instalment stays the same, so the extra room goes straight to principal. The balance falls faster and the loan ends before the original date. This is where the big interest savings are.
Reduce EMI: the instalment is recalculated over the remaining tenure at the new rate. Your monthly outgo drops but the end date is unchanged, so you pay interest for just as many months and save much less. With fees added, a small rate cut in this mode can even leave you worse off — which is why the result above always shows the net figure and the reason.
A worked example
Take the default scenario above: a ₹35,00,000 home loan at 9.5% for 240 months, with an EMI of about ₹32,625. After 24 months, ₹33,76,511 is still outstanding.
Transferring that balance to 8.4% while keeping the same EMI closes the loan 32 months early (Feb 2044 instead of Oct 2046) and saves ₹10,50,634 of interest. After ₹20,000 of charges the net saving is ₹10,30,634, with break-even in month 30.
Choosing to reduce the EMI instead brings the instalment down to ₹30,306 (₹2,319 lower each month) but keeps the original end date, so the net saving is only ₹4,83,219.
Limitations
- The outstanding balance is derived from your original terms; use your latest statement figure for exactness.
- Top-up loans taken along with the transfer are not modelled.
- Future floating-rate movements at either lender are unknown and assumed flat.
- Insurance the new lender bundles in, and any credit-score impact, are not included.
Frequently asked questions
- What is a loan balance transfer?
- A new lender pays off your outstanding balance and you continue repaying them at a different interest rate. Your loan amount does not change; only the rate, the lender and possibly the EMI or tenure do.
- Should I keep my EMI or reduce it after transferring?
- Keeping the same EMI at a lower rate means more of each instalment goes to principal, so the loan closes earlier and you save the most interest. Reducing the EMI keeps the original end date and improves monthly cash flow, but saves far less.
- How much rate difference makes a transfer worthwhile?
- There is no fixed rule — it depends on the outstanding amount, the remaining tenure and the fees. This calculator shows the net saving after fees and the break-even month, which is the honest test.
- What charges apply on a balance transfer?
- Typically a processing fee of 0.25%–1% of the outstanding amount, plus legal, valuation, stamping or documentation charges. Enter both fields so the net saving reflects the real cost.
- Why does a lower rate sometimes look worse?
- If you choose to reduce the EMI, you stay in the loan for the full original tenure and pay interest for longer, which can cancel out much of the rate benefit — and the fees still apply. Switch to 'Keep current EMI' to see the difference.
- Is a transfer late in the tenure useful?
- Usually not. Most of the interest is charged in the early years, so by the last third of the tenure there is little interest left to save and the fees can exceed the benefit.
Last reviewed: 1 September 2026
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.