How this calculation works
Compare keeping today’s outstanding loan with refinancing that same amount over the same remaining term. Equal terms isolate the effect of the new interest rate and entered switching costs. A smaller monthly instalment alone can be misleading if a real refinance also extends the maturity; that different-term quotation is outside this comparison.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For ₹1,20,000 outstanding with one year left, compare 12% current interest with 6% new interest and ₹1,000 transfer costs. Current EMI is ₹10,661.85 and new EMI ₹10,327.97. Gross repayment saving is ₹4,006.60; after fees, net saving is ₹3,006.60. Monthly relief is ₹333.88, recovering the fee in three months.
Assumptions and limits
- Both loans keep identical outstanding principal and remaining tenure, with fixed monthly reducing-balance rates.
- Transfer fees are paid upfront and not financed. Include relevant costs in that input; tax effects, rate resets and switching eligibility are not estimated.
Questions people ask
Why not restart a longer term after transfer?
A longer term mixes rate savings with delayed principal repayment. This tool deliberately keeps the remaining term constant so the comparison is like for like.
Does fee recovery prove a transfer is suitable?
No. It is a simple cash-flow crossing based on monthly relief. Check the agreement, rate-change risk, total cost and how long the loan is likely to remain outstanding.