Balance transfer calculator: methodology
How we compare staying with your current lender against switching, including all switching costs, net saving and the month the switch pays for itself.
Last reviewed: Reviewed by: ClearRupee Editorial Team
Calculation
Current EMI = EMI(outstanding, current rate, remaining months)
New EMI = EMI(outstanding, new rate, new tenure)
Switching costs = processing fee + GST on it + legal & valuation
+ stamp duty + foreclosure charge + other
Stay total = current EMI × remaining months
Switch total = new EMI × new tenure + switching costs
Net saving = stay total − switch total
A negative net saving means switching costs you more than staying.
Break-even month
The first month in which the running total of (current EMI − new EMI) is at least the switching costs. If that never happens within the loan term, we show "No break-even within the loan term". If there are no switching costs, there is nothing to recover.
Different tenures
If the new tenure is different from your remaining tenure, we show a warning. A longer tenure lowers the EMI but usually increases total interest, so comparing EMIs alone can mislead.
Limitations
- Assumes both rates stay fixed.
- The whole outstanding balance moves; top-up loans are not included.
- All switching costs are paid at the time of transfer.
- Amounts are nominal rupees, not discounted.