Balance Transfer Calculator
See how much you'd save by transferring your loan balance to a lower interest rate.
Your inputs
Compares total interest at your current rate vs a new rate over your remaining tenure, after accounting for the transfer fee.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Balance Transfer Calculator
Got a balance transfer offer from another lender at a lower rate? "Balance transfer calculator," "loan transfer to another bank calculator," or "home loan balance transfer calculator" is what borrowers search before switching, because the advertised lower rate doesn't tell the whole story — there's usually a processing fee, and the actual savings depend on how much tenure remains on your loan.
This calculator compares your total remaining interest at your current rate against your total interest at the new offered rate over the same remaining tenure, then subtracts the balance transfer fee (typically 0.5-2% of the transferred amount) to show your genuine net savings. Balance transfers make the most sense when a meaningful rate gap exists and a substantial tenure remains — a common scenario is a home loan taken a few years ago at a higher rate, now eligible for a lower rate elsewhere as the market has shifted. This calculator is equally useful for home loan balance transfers (the most common use case, and a way to benefit from falling interest rates without a full refinance), as well as personal loan balance transfer and credit card balance transfer scenarios, where the same rate-gap-versus-fee logic applies.
How to use this calculator
- Enter your outstanding balance, current rate, and remaining tenure.
- Enter the new offered interest rate and transfer fee.
- See your net savings after the fee.
Frequently asked questions
›Is a balance transfer always worth it?
Only if the interest savings over your remaining tenure exceed the transfer fee by a meaningful margin — for a loan with little tenure left or a small rate difference, it may not be worth the hassle.
›What fees apply to a balance transfer?
Typically a processing fee of around 0.5-2% of the transferred loan amount, charged by the new lender, plus possibly a foreclosure charge from your existing lender.
›Can I transfer a credit card balance to reduce interest?
Yes, many banks offer balance transfer credit cards or personal loans specifically to pay off high-interest credit card debt at a lower rate, though usually for a limited promotional period.
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Read the full guide
Loan Balance Transfer: How Much You Actually Save