Should you refinance your home loan? Calculate your monthly savings, break-even point and total interest saved — in seconds.
Current loan
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New loan (refinance)
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⚠️ Refinancing costs (one-time)
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—Monthly savings
—Break-even
—Total interest saved
—Net benefit
MetricCurrent loanNew loan
Monthly EMI——
Total interest——
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Tenure remaining——
Break-even progress
Closing costs
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Savings by staying
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Refinancing tip
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This calculator provides indicative results. Actual savings depend on your bank's terms, prepayment penalties, tax implications and processing timelines. Consult a financial advisor before refinancing.
When does refinancing make sense?
Refinancing makes financial sense when the total interest you save exceeds the one-time cost of refinancing, and you plan to stay in the property long enough to reach the break-even point. The general rule of thumb is that a rate reduction of 0.5% or more is worth exploring, but the exact benefit depends on your remaining loan balance and tenure.
The break-even point is the number of months until your cumulative monthly savings equal the total closing costs. If you plan to stay in the property beyond the break-even month, refinancing is likely beneficial.
Frequently asked questions
What is the break-even point?
The break-even point is the number of months until your monthly EMI savings equal the total one-time cost of refinancing. If you plan to stay in the property beyond this point, refinancing is financially beneficial. If you plan to sell or move before then, you will not recoup the costs.
What costs are involved in refinancing a home loan?
Common refinancing costs include: processing fee (0.5–1% of loan amount), prepayment penalty on the existing loan (0–2%, depends on whether it is fixed or floating rate), legal/documentation charges, and property valuation fee. Enter all these in the "Refinancing costs" section.
Is there a prepayment penalty on home loans?
Under RBI guidelines, banks cannot charge a prepayment penalty on floating-rate home loans. However, fixed-rate loans may have a prepayment penalty of 2–4% of the outstanding principal. Check your loan agreement before refinancing.
Should I reduce EMI or tenure when refinancing?
If you want to improve your monthly cash flow, choose the same tenure and lower your EMI. If you want to save maximum total interest, keep the same EMI and reduce the tenure. The second option usually saves significantly more in total interest.