💰 Loan Refinance Calculator 2026
Calculate your potential savings by refinancing your loan at a lower interest rate. Compare current vs new loan terms with break-even analysis and cumulative savings over time.
Current Loan
Range: ₹1,00,000 - ₹1,00,00,000
Range: 5% - 20% p.a.
Current Monthly EMI
₹ 52,040
New Loan (Refinance)
Lower rate = More savings!
Processing fee, legal charges, valuation fees
New Monthly EMI
₹ 47,782
Monthly Savings
₹ 4,258
Lower EMI with new loan
Total Interest Savings
₹ 7,66,440
Over remaining loan term
Break-even Point
12
Months to recover costs
Break-even in 12 months
Detailed Comparison
| Parameter | Current Loan | New Loan | Difference |
|---|---|---|---|
| Loan Amount | ₹ 50,00,000 | ₹ 50,00,000 | ₹ 0 |
| Interest Rate | 9.50% | 8.00% | -1.50% |
| Monthly EMI | ₹ 52,040 | ₹ 47,782 | -₹ 4,258 |
| Total Interest Payable | ₹ 43,67,200 | ₹ 36,00,760 | -₹ 7,66,440 |
| Total Payment | ₹ 93,67,200 | ₹ 86,00,760 | -₹ 7,66,440 |
| Refinancing Costs | - | ₹ 50,000 + ₹ 0 penalty | |
Cumulative Savings Over Time
Your savings grow over time after break-even point
Frequently Asked Questions
What is loan refinancing?
Loan refinancing means transferring your outstanding loan to another bank offering lower interest rates. The new bank pays off your existing loan, and you pay EMI at the new rate. This can help you save significant interest over the loan term.
When should I refinance my loan?
Consider refinancing when: 1) Interest rates drop by at least 1-2%, 2) Your credit score has improved significantly, 3) You want to change loan tenure, 4) Break-even period is less than your planned stay in the loan, 5) You can recover refinancing costs within 2-3 years.
What costs are involved in refinancing?
Typical costs include: Processing fee (0.5-1% of loan amount), legal & technical valuation fees, CERSAI charges, stamp duty (in some states), prepayment penalty on existing loan, and GST. Total costs usually range from 1-3% of loan amount. Use our calculator to see if savings justify these costs.
What is break-even point?
Break-even point is the time (in months) it takes for your monthly savings to recover the upfront refinancing costs. After this point, all savings are pure profit. A shorter break-even period (typically less than 24 months) makes refinancing a good decision.
Will refinancing affect my credit score?
Initially, your credit score may drop by 5-10 points due to hard inquiry and new loan application. However, timely payments on the new loan will help rebuild your score. The long-term benefit of lower EMI and better debt management outweighs the temporary dip.
📊 Quick Tips for Refinancing
- • Compare offers from at least 3-4 lenders before deciding
- • Check if your existing lender offers a better rate match
- • Consider the total cost of refinancing, not just interest rate
- • Ensure break-even period is less than your planned stay in the loan
- • Maintain good credit score (750+) for best rates