Balance Transfer Calculator: Should You Switch Your Loan?

If your loan rate is high, transferring to a cheaper lender can save lakhs. This calculator shows the savings after costs.

What is it?

A balance transfer moves your outstanding loan to a new lender at a lower rate. The saving must exceed the transfer and processing costs to be worth it.

How is it calculated?

It compares total remaining payments at the old rate against the new rate plus transfer costs; the difference is your net saving.

Example

On a ₹30 lakh balance with 15 years left, dropping from 9.5% to 8.5% can save several lakh in interest even after fees.

Key things to know

• Transfers pay off best early in the loan, when interest dominates.
• Count all costs: processing fee, legal, valuation.
• A small rate cut on a large balance still helps.
• Negotiate with your current lender first — they may match.

What to do next

Compare balance-transfer offers and total costs before switching.

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Frequently asked questions

Is it always worth switching?
No — only if the saving beats the total transfer cost.

Any hidden charges?
Processing, legal and valuation fees may apply.

Does it hurt my credit?
A new enquiry has a minor, temporary effect.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.