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About this tool
Compare current loan versus refinance offers with new EMI, interest savings, closing costs, break-even month, and cash-flow impact.
The Refinance Savings Calculator amortises your existing loan and a proposed refinance offer month by month using the standard EMI formula, then subtracts the full switching cost to show what you actually keep. It is for borrowers holding a balance-transfer offer who want to know whether a lower rate survives the processing fee, legal and valuation charges, and the foreclosure penalty on the outstanding balance. You get the new EMI, total interest on each loan, net savings after costs, and the break-even month at which the cheaper EMI has repaid the switch.
Open Refinance Savings Calculator on AltFTool — it loads instantly in your browser.
Fill in Current Outstanding Balance, Current Interest Rate and Remaining Tenure, or press Load Sample to start from the worked scenario.
Enter New Interest Rate and New Tenure, then the switch costs: Processing Fee, Legal Charges, Valuation Charges, Prepayment Penalty, Cashback / Waiver and Tax Benefit Impact.
Read New EMI, Net Savings and Break-even Month in the Refinance Verdict panel, then press Copy Summary or Export CSV to save refinance-savings.csv.
Processing, legal and valuation charges, the percentage foreclosure penalty and any cashback are netted off before savings are reported.
It divides the total switch cost by the monthly EMI reduction, so you see the exact month the refinance turns positive.
Both loans are simulated to payoff, so a shorter or longer new tenure shows up as a change in total interest instead of a misleading EMI drop.
It is worth it when your net savings after costs are positive and you will hold the loan past the break-even month. The calculator computes break-even as the total switching cost divided by the monthly EMI reduction, so a 60,000 switch cost against a 3,000 lower EMI breaks even in month 20 and everything after that is gain.
The calculator totals the processing fee, legal charges and valuation charges, adds the prepayment or foreclosure penalty as a percentage of the outstanding balance, and subtracts any cashback the new lender offers. In the sample scenario a 0.5% penalty on a 28,00,000 balance alone adds 14,000 to the switch cost.
No. A lower EMI often comes from a longer tenure, which can raise total interest even at a lower rate. The tool simulates both loans to full payoff and reports total interest on each, so you can see whether the EMI drop is a real saving or just a stretched schedule.
Because interest you no longer pay is also interest you can no longer claim as a deduction. Entering your marginal rate reduces the reported savings by that share of the interest saved, giving an after-tax figure. This is an informational estimate only — confirm how home loan interest deductions apply to you with a qualified tax adviser.
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