What is break-even period in loan transfer?

Break-even period is the number of months required for EMI savings to recover processing fees and switching charges.

Does balance transfer reduce tenure or EMI?

Most lenders calculate a new EMI for the remaining tenure, but borrowers may also request tenure reduction if cash flow allows.

Yes. Add every processing, legal, valuation, documentation, insurance, and administrative cost into switching costs.

Finance & Tax

Calculate home loan balance transfer savings, new EMI, switching cost, and break-even period before refinancing your home loan.

Key terms

Outstanding principal

INR

100000100000000

Existing interest rate

118

Remaining tenure

Months

12360

New lender interest rate

118

Switching cost type

Processing fee and costs

INR / %

0500000

Net savings = current remaining interest - new remaining interest - switching costs

The calculator recomputes EMI and lifetime interest at both rates for the same remaining tenure, then subtracts transfer-related charges.

1Calculate current EMI and total remaining interest at the existing rate.
2Calculate new EMI and total remaining interest at the proposed lender rate.
3Convert processing fee to rupees if entered as a percentage of outstanding principal.
4Subtract switching costs from gross interest saving and estimate break-even months using monthly EMI saving.

Reference

Compare common scenarios quickly. Scroll horizontally on smaller screens.

Reference 1

Reference 2

Reference 3

Reference 4

Rate gap	Remaining tenure	Switching fee	Decision signal
0.25%	Less than 5 years	High	Usually avoid
0.50%	10+ years	Low	Check break-even
0.80%+	15+ years	Low/medium	Often beneficial
New rate higher	Any	Any	Not beneficial

It is usually worth considering when the interest-rate gap is meaningful, remaining tenure is long, and switching costs are recovered quickly.

Net lifetime savings

₹3,15,646.01