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Refinance Calculator

Old EMI: --

New EMI: --

Monthly savings: --

How this refinance calculator works

Enter the loan principal, tenure in years, the old annual interest rate, and the new annual rate. The calculator builds a standard reducing-balance EMI at each rate with the same principal and tenure, then subtracts: Monthly savings = Old EMI − New EMI. A ₹10,00,000 loan for 20 years at 10% versus 8% shows Old EMI 9650.22, New EMI 8364.40, and Monthly savings 1285.82.

The EMI formula is [P × r × (1 + r)^n] ÷ [(1 + r)^n − 1], where r is the monthly rate (annual % ÷ 12 ÷ 100) and n is years × 12. If the annual rate is 0, EMI is principal ÷ n. Years defaults to 20. Principal and years must be greater than 0; empty principal or rate fields leave all three lines as “--.”

Positive monthly savings mean the new rate lowers the payment. Equal rates give 0.00 savings. A higher new rate makes savings negative. The page does not include processing fees, foreclosure charges, or a different remaining tenure—only the EMI comparison for the numbers you enter.

All three money figures use two decimal places. Treat the result as a starting point; lender fees and your actual outstanding balance still matter for a real refinance decision.

Refinance examples

Each row uses the same EMI formula at both rates, then Old EMI − New EMI, rounded to two decimals.

PrincipalOld %New %YearsOld EMINew EMISavingsNote
1000000108209650.228364.401285.822% rate cut
500000129156000.845071.33929.5115-year tenure
200000097.52017994.5216111.861882.66Larger principal
3000008.57252415.682120.34295.3425 years
75000011111010331.2510331.250.00Same rate
1000000051666.671666.670.00Zero interest

How to read the result

  • Old vs New EMI

    Same principal and years; only the rate changes.

  • Monthly savings

    Old EMI − New EMI. Positive means a cheaper payment.

  • Standard EMI formula

    Reducing-balance monthly instalment; 0% rate uses P ÷ n.

  • Fees not included

    Closing costs and charges are outside this comparison.

Frequently asked questions

  • What does this refinance calculator compare?

    The monthly EMI at your old interest rate versus the EMI at a new rate for the same principal and tenure. Monthly savings = Old EMI − New EMI. A ₹10,00,000 loan for 20 years at 10% versus 8% shows Old EMI 9650.22, New EMI 8364.40, and Monthly savings 1285.82.

  • How is each EMI calculated?

    EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n − 1], where P is principal, r is monthly rate (annual % ÷ 12 ÷ 100), and n is years × 12. If the annual rate is 0, EMI is simply P ÷ n. The same formula runs once for the old rate and once for the new rate.

  • What does Monthly savings mean?

    How much lower (or higher) the new EMI is each month. A positive figure means the new rate cuts the payment. If both rates are equal, savings are 0.00. If the new rate is higher, savings turn negative.

  • Why is tenure the same for both EMIs?

    This page holds principal and years fixed and only changes the interest rate. It does not model a shorter remaining term, a top-up, or a different amortisation schedule after refinance paperwork.

  • What is the default for Years?

    Years starts at 20. You can change it. Principal must be greater than 0 and years must be greater than 0. Empty principal or rate fields leave all three results as “--.”

  • Are processing fees or closing costs included?

    No. The comparison is EMI-only. Foreclosure charges, processing fees, and legal costs are not subtracted from monthly savings. Factor those in separately when deciding whether to refinance.

  • What if the interest rate is zero?

    EMI becomes principal ÷ number of months. A ₹1,00,000 loan for 5 years at 0% is 1666.67 for both old and new EMI when both rates are 0, so monthly savings are 0.00.

  • How precise are the answers?

    Old EMI, New EMI, and Monthly savings are each shown to two decimal places. A ₹5,00,000 loan for 15 years at 12% versus 9% gives about 6000.84, 5071.33, and 929.51.

  • Does a lower rate always save money overall?

    A lower rate lowers the EMI on this page when tenure and principal stay the same. Lifetime interest and fees still depend on your lender’s charges and whether you keep the full tenure. Use the monthly savings figure as a starting comparison only.

  • How do I check the answer roughly?

    Compute EMI at the old rate and at the new rate with the standard reducing-balance formula, then subtract. For ₹3,00,000 over 25 years at 8.5% versus 7%, expect about 2415.68, 2120.34, and 295.34 in monthly savings.