Balance Transfer Calculator - Calculate Your Savings
Calculate how much you can save by transferring your loan to a new bank. Compare interest rates, processing fees, and foreclosure charges.
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Transfer your loan to save on interest costs.
Calculation Summary
Side-by-Side Comparison
Visualizations
Total Cost Comparison
Balance Over Time
About Balance Transfer Calculator
What is a Balance Transfer?
A balance transfer involves moving your outstanding loan amount from one lender to another, typically to benefit from a lower interest rate. This can help you save significantly on interest costs over the remaining loan tenure.
How to Use This Calculator
Enter your current loan details including outstanding principal, current interest rate, and remaining tenure. Then enter the new loan offer with its interest rate, processing fee, and any foreclosure charges from your current bank. The calculator will show your potential savings and breakeven point.
Important Considerations
While a lower interest rate can save money, remember to factor in processing fees, foreclosure charges, and GST. Calculate the breakeven point to ensure you'll stay with the new lender long enough to recover these upfront costs.
Frequently Asked Questions
Is balance transfer worth it?
Balance transfer can be beneficial if the interest savings exceed the processing fees and foreclosure charges. Use our calculator to determine your breakeven point - if you plan to stay with the new lender longer than the breakeven period, it makes financial sense.
What are foreclosure charges?
Foreclosure charges are fees imposed by your current lender for closing the loan before the end of the tenure. These are usually a percentage of the outstanding principal and vary from bank to bank.
Is GST applicable on processing fees?
Yes, GST at 18% is applicable on processing fees and foreclosure charges for balance transfers. Our calculator includes GST in the total cost calculation.
What is the breakeven point?
The breakeven point is the number of months after which your monthly interest savings accumulate to cover the upfront switching costs (processing fee + foreclosure charge + GST). If you plan to stay with the new lender beyond this period, you'll start saving money.