Calculating your net savings is straightforward once you know the Refinance Savings formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Refinance Savings Calculator.
What is Refinance Savings?
The Refinance Savings calculation tells you your net savings from a few simple inputs. The figure you are solving for here is the net savings, expressed in INR.
The Refinance Savings formula
The core formula is:
Net savings = (Current EMI - New EMI after refinancing) × Months remaining - Refinancing feesHere is what each input means:
- Current EMI — a money amount. Example: ₹25,000.
- New EMI after refinancing — a money amount. Example: ₹22,000.
- Months remaining — a number. Example: 120.
- Refinancing fees — a money amount. Example: ₹10,000.
How to calculate it step by step
- Write down the current emi (for example, ₹25,000).
- Write down the new emi after refinancing (for example, ₹22,000).
- Write down the months remaining (for example, 120).
- Write down the refinancing fees (for example, ₹10,000).
- Apply the formula above to get your net savings.
- Double-check the result with the Refinance Savings Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Current EMI | ₹25,000 |
| New EMI after refinancing | ₹22,000 |
| Months remaining | 120 |
| Refinancing fees | ₹10,000 |
| Net savings | ₹3,50,000 |
| Monthly saving | ₹3,000 |
| Months to recover fees | 3.3 |
With current emi of ₹25,000, new emi after refinancing of ₹22,000, months remaining of 120 and refinancing fees of ₹10,000, the net savings works out to ₹3,50,000.
Example 2
With current emi of ₹50,000, new emi after refinancing of ₹22,000, months remaining of 120 and refinancing fees of ₹10,000, the net savings works out to ₹33,50,000.
| Result | Value |
|---|---|
| Net savings | ₹33,50,000 |
| Monthly saving | ₹28,000 |
| Months to recover fees | 0.4 |
Example 3
With current emi of ₹13,000, new emi after refinancing of ₹22,000, months remaining of 120 and refinancing fees of ₹10,000, the net savings works out to -₹10,90,000.
| Result | Value |
|---|---|
| Net savings | -₹10,90,000 |
| Monthly saving | -₹9,000 |
| Months to recover fees | -1.1 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Refinance Savings Calculator does it instantly, for free, with the formula and a worked example built in.
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