Loan Refinance Calculator
See how much you save by refinancing to a lower interest rate. Accounts for processing fees and calculates break-even.
Loan refinancing (or home loan balance transfer) means moving your outstanding loan to a new lender offering a lower interest rate. Even a 0.5% reduction in interest rate on a large home loan can save lakhs of rupees over the remaining tenure. But refinancing involves costs — processing fees, legal charges, insurance reset — and a break-even period before you start genuinely saving. This calculator helps you quantify the actual net savings and the exact number of months to break even on the switching costs.
📋 How to Use This Calculator
Enter your current outstanding loan balance and remaining tenure. Enter your current interest rate and the new (lower) interest rate you have been offered. Enter the total processing fee and switching costs for the new loan. The calculator shows your current and new EMIs, monthly and total interest savings, net savings after deducting all costs, and critically — the break-even period (months before you start actually saving). If the break-even is more than 2–3 years, refinancing may not be worth it.
💡 Key Facts & Information
When to refinance: ideal when remaining tenure is 10+ years and rate difference is 0.5%+. For short remaining tenures (under 5 years), the fixed switching cost may outweigh variable interest savings. Rule of thumb: monthly EMI saving × break-even months = total switching cost. If break-even < 18 months, refinancing makes strong sense. Consider all costs: processing fee (0.5–1% of outstanding), legal charges (₹5,000–15,000), stamp duty on new agreement, insurance reassignment fees. Also consider any existing interest rate reset cycles with your current lender before switching.