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Financial Calculator

Loan Refinancing Calculator India 2026

Instantly compare your current loan with refinancing options

Current Loan Details

Enter your existing loan information

₹

Fifty Lakhs rupees

%
1%30%
1 year30 years
₹

Zero rupees

Calculated EMI: ₹52.21 K

New Loan Terms

Enter the proposed refinancing terms

%
1%30%
1 year30 years
₹

Zero rupees

New Principal: ₹50.00 L

Refinancing Costs & Fees

Enter all associated costs for accurate analysis

₹

Twenty Five Thousand rupees

₹0₹1L

Processing Fee: ₹25.00 K

%

Penalty Amount: ₹1.00 L

₹

Fifteen Thousand rupees

Refinancing Analysis

Refinancing looks beneficial!

EMI Comparison

Current EMI₹52.21 K
New EMI₹49.24 K
Monthly Savings+₹2.97 K

Break-even Analysis

Total Costs₹1.40 L
Break-even Period48 months
Total Savings+₹3.95 L

Cost Breakdown

Processing Fee₹25.00 K
Prepayment Penalty₹1.00 L
Stamp Duty & Legal₹15.00 K
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What is Loan Refinancing?

Loan refinancing is the process of replacing your existing loan with a new one, typically with better terms such as lower interest rates, different tenure, or improved conditions. This strategic financial move can help reduce monthly payments and total interest costs significantly.

When to Consider Refinancing

Smart timing can save you thousands. Consider refinancing when opportunities align.

Interest rates drop by 0.5-1% or more from your current rate

Credit score improved since you first took the loan

Need to adjust tenure for better cash flow management

Require additional funds through a top-up loan option

How to Monitor Your Loan

Stay informed about market conditions and loan performance to identify opportunities.

Track market rates monthly and compare with your current rate

Monitor credit score for improvements that unlock better terms

Review annual statements to understand remaining principal

Calculate break-even periodically using our calculator

How to Use the Calculator

Follow these simple steps to analyze your refinancing options

1

Current Loan Details

Outstanding amount, current rate & tenure

2

New Loan Terms

Interest rate and tenure from new lender

3

Include All Costs

Processing fees and prepayment penalties

4

Review Analysis

Break-even period and savings calculation

Loan Refinancing Calculation Formulas

Formulas for calculating refinancing benefits and break-even analysis.

Net Benefit = Interest Savings - Refinancing Costs

Example:

₹3,00,000 interest savings with ₹50,000 refinancing costs

3,00,000 - 50,000
= ₹2,50,000

Variables:

Interest Savings - Difference in total interest payments
Refinancing Costs - Processing fees, legal costs, etc.

Break-Even = Refinancing Costs / Monthly Savings

Example:

₹50,000 refinancing costs with ₹2,500 monthly savings

50,000 / 2,500
= 20 months

Variables:

Refinancing Costs - Total cost of refinancing
Monthly Savings - Monthly EMI reduction

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Frequently Asked Questions About Loan Refinancing

Get answers to common questions about Loan Refinancing

What is the break-even period in loan refinancing?

The break-even period is the time it takes for your monthly savings to cover all refinancing costs (processing fees, prepayment penalties, legal charges). After this period, you start saving money every month.

What costs are involved in loan refinancing?

Common refinancing costs include processing fees (0.5-2% of loan amount), prepayment penalty on existing loan (0-3%), stamp duty, legal charges, and documentation fees. Our calculator helps you factor in all these costs.

How accurate is the refinancing calculator?

Our calculator provides highly accurate estimates based on standard EMI calculation formulas. However, actual terms may vary based on lender policies, your credit profile, and current market conditions.

Can I refinance any type of loan?

Yes, you can refinance various types of loans including home loans, personal loans, car loans, and business loans. Each loan type may have different refinancing terms and benefits.

How do I get the best refinancing deal?

Shop around with multiple lenders, negotiate processing fees, maintain a good credit score, consider the total cost vs savings ratio, and use our calculator to compare different offers objectively.

What documents are required for loan refinancing?

Typically required documents include income proof (salary slips, ITR), existing loan statements, property documents (for secured loans), bank statements, KYC documents, and current loan closure letter from existing lender.

How long does the refinancing process take?

The refinancing process usually takes 15-30 days, depending on the lender's processing time, document verification, property valuation (if applicable), and approval procedures. Online applications may be processed faster.