Loan balance transfer calculator: is switching lenders worth it?

A balance transfer moves your loan to a lender with a lower rate. Enter your current loan balance, rate and remaining tenure, plus the new lender's rate and fees, and this calculator shows the EMI difference, the interest you could save and how long it takes to recover the cost of switching.

The saving is the gap in total interest between the two loans over the remaining tenure, minus the processing fee and other charges of the move. If the break-even point is far away, or you expect to repay early anyway, the switch may not pay off. Always compare the all-in cost, not just the headline rate.

Frequently asked questions

When does a balance transfer make sense?

Usually when the rate difference is meaningful, a long tenure remains, and the fees are small compared with the interest saved.

Does it affect my credit score?

The new lender runs a credit check, which can cause a small, temporary dip. Closing the old loan and opening a new one is recorded in your history.

Can I ask my current lender to match the rate?

Often yes. Some lenders will cut your rate to keep the loan, which avoids the fees of moving. It costs nothing to ask.

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