Home loan balance transfer calculator
A balance transfer pays when the interest you save over the rest of the loan is clearly more than the one-time cost of switching. Enter your outstanding principal, remaining months and the two rates. The calculator compares both loans month by month, keeping either your tenure or your EMI, subtracts the processing fee with 18% GST, Maharashtra stamp duty on the new mortgage and other charges, and shows the net saving and the month you come out ahead.
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- Method and sources shown below
- Reviewed
Calculator
Stay or switch
Year by year
"Ahead by" is the EMIs saved so far plus the difference in outstanding balance, less the switching costs. The highlighted row is where it turns positive.
Month-by-month comparison
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How this is calculated
Both loans start from the same outstanding principal P and are amortised month by month, with interest each month = balance × annual rate ÷ 12.
EMI = P × i × (1 + i)n ÷ ((1 + i)n − 1), where i = annual rate ÷ 12 and n = months
- Stay: the EMI at your current rate over the remaining months.
- Switch, keep the tenure: a new EMI at the new rate over the same remaining months.
- Switch, keep the EMI: your current EMI at the new rate, which repays the loan sooner; the last instalment is smaller.
- Interest saved = total interest if you stay − total interest if you switch. Net saving = interest saved − switching costs. Amounts are not discounted to today's value.
- Break-even month is the first month in which the EMIs saved so far plus (old outstanding − new outstanding) are at least equal to the switching costs. When you keep the tenure, the simpler payback of costs ÷ monthly EMI saving is also shown.
Switching costs
- Processing fee = the higher of the % you enter × loan and the minimum fee, plus 18% GST.
- Stamp duty on the new mortgage (Maharashtra): Article 6(1) of the Maharashtra Stamp Act on an agreement relating to deposit of title deeds. Loans up to ₹5 lakh pay 0.1% (minimum ₹100); larger loans pay 0.3% of the whole loan amount, capped at ₹20 lakh. This is the same rule our stamp duty calculator uses.
- Pre-payment charge on the old loan: RBI has barred banks from charging it on floating-rate term loans to individuals since 7 May 2014. Under RBI's Pre-payment Charges on Loans Directions, 2025, no regulated lender (banks, co-operative banks, NBFCs including housing finance companies, all-India financial institutions) may charge it on floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026, with or without co-borrowers. For fixed-rate loans, a charge can apply only if it was disclosed in the sanction letter, loan agreement or Key Facts Statement.
What the calculator leaves out
- Rate changes. Bank floating rates linked to an external benchmark are reset at least once every three months, so both rates will move. The comparison holds as long as the gap between them holds.
- Tax. Interest on a home loan for a self-occupied house is deductible up to ₹2 lakh a year under section 22 of the Income-tax Act, 2025, under the old regime only. Lower interest can mean a slightly smaller deduction.
- Top-up. A top-up taken with the transfer is a new loan and should be compared separately.
The example reproduces the worked example in our balance transfer guide: ₹40 lakh outstanding over 180 months, moving from 9.00% to 8.25%, takes the EMI from ₹40,571 to ₹38,806. Keeping the old EMI instead closes the loan 14 months earlier and saves about ₹5.96 lakh of interest.
Ask your own lender first. RBI's 2025 Directions allow banks to cut the spread for existing borrowers to retain them, and a loan on MCLR or base rate can be moved to the external benchmark for no more than reasonable administrative or legal costs.
Questions people ask
When does a home loan balance transfer make sense?
When the interest saved over the remaining tenure is well above the one-time switching cost. The saving is larger when the outstanding loan is big, many years remain and the rate gap is wide. It usually does not pay with a small balance, only a few years left, a gap of a few basis points, or if you plan to sell or prepay soon.
Can my bank charge a penalty for moving the loan?
Not on a floating-rate home loan in your own name. RBI has barred banks from foreclosure charges on floating-rate term loans to individuals since May 2014. Its Pre-payment Charges Directions, 2025 extend this to all regulated lenders, including NBFCs and housing finance companies, for floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026. Fixed-rate loans can carry a charge, but only if it was disclosed in the sanction letter, loan agreement or Key Facts Statement.
How much stamp duty is payable on a balance transfer in Maharashtra?
The new lender's mortgage by deposit of title deeds is stamped under Article 6(1) of the Maharashtra Stamp Act: 0.1% of the loan (minimum ₹100) for loans up to ₹5 lakh, and 0.3% of the whole loan amount above that, capped at ₹20 lakh. On a ₹40 lakh transfer that is ₹12,000.
Should I keep the same EMI or the same tenure after switching?
Keeping the EMI closes the loan earlier and saves more interest overall. Keeping the tenure lowers the monthly EMI, which helps cash flow. Try both options in the calculator to see the difference in interest and break-even.
What does break-even month mean here?
It is the first month in which you would be ahead even if you closed the loan then: the EMIs you have saved plus the lower outstanding balance on the new loan add up to more than what you paid to switch. Paying only from the EMI saving takes a little longer, and that figure is shown too when you keep the tenure.
Should I ask my current bank before switching?
Yes. RBI's 2025 Directions let banks reduce the spread for existing borrowers to retain them, and a loan still on MCLR or base rate can be moved to the external benchmark for no more than reasonable administrative or legal costs. A rate cut from your own bank often costs less than a transfer.
Is anything I type stored or sent to Biz Corp Solutions?
No. The calculation runs entirely in your browser. Your inputs are only kept in this page's web address so you can copy a link and share the same calculation.
Is a lower home loan rate available to you?
We compare balance transfer offers from banks and housing finance companies, check the real switching cost and prepare the file. The lender decides the final rate and terms.
This calculator assumes a constant rate on both loans for the rest of the tenure, while floating rates are reset at least every three months. Lenders calculate interest on daily balances and may round differently. Lenders, regulators and government offices apply their own rules and may round or calculate differently; their figures prevail. Biz Corp Solutions arranges funding through partner banks, NBFCs and financial institutions, and lenders decide sanction, rates and terms. Last reviewed 5 October 2026.