Work out loan transfer saving instantly with clear inputs, formula shown and shareable results.
A balance transfer refinances the outstanding balance at a lower rate for the remaining tenure. The gross saving is the EMI reduction multiplied by the months left, against which transfer costs must be set.
Transfer saving
Saving = [PMT(B, r_old, n) - PMT(B, r_new, n)] × n
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Processing fees at the new lender, legal and valuation charges, stamp duty on fresh documents and any foreclosure charge on the old loan.
Usually when the rate gap is at least 0.5 points and a good part of the tenure remains, so the saving has time to accumulate.