About the Loan Foreclosure Calculator
What is the Loan Foreclosure Calculator?
Foreclosure means repaying the entire outstanding loan before the end of its tenure. You avoid all future interest, but fixed-rate loans often carry a foreclosure charge of 2–5% plus GST.
Enter the outstanding principal, rate, remaining months and foreclosure charge. The calculator works out the future interest you avoid, the charge, the total payable now and your net saving.
How to use the Loan Foreclosure Calculator
- Outstanding Principal (₹) (sample: 12,00,000)
- Interest Rate (% per year) (sample: 10)
- Remaining Tenure (months) (sample: 60)
- Foreclosure Charge (% of outstanding) (sample: 2)
- Press Calculate Foreclosure Benefit (results also refresh as you type). The result card shows the Net Saving from Foreclosure, along with Amount to pay now, Future interest avoided, Foreclosure charge incl. 18% GST and Current EMI you stop paying.
Formula used
Net saving = Future interest avoided − Foreclosure charge × 1.18
- Future interest = EMI × remaining months − outstanding principal
RBI does not allow foreclosure charges on floating-rate loans to individuals for non-business purposes, and has extended this to more loans sanctioned from 1 January 2026.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Outstanding Principal (₹) | 12,00,000 |
| Interest Rate (% per year) | 10 |
| Remaining Tenure (months) | 60 |
| Foreclosure Charge (% of outstanding) | 2 |
| Result | Value |
|---|---|
| Net Saving from Foreclosure | ₹3,01,467 |
| Amount to pay now | ₹12,28,320 |
| Future interest avoided | ₹3,29,787 |
| Foreclosure charge incl. 18% GST | ₹28,320 |
| Current EMI you stop paying | ₹25,496 |
Tips for using the Loan Foreclosure Calculator
- Collect the no-dues certificate and original documents after foreclosure.
- Make sure the lender updates the loan as closed with credit bureaus.
- Compare the saving with what the money could earn if invested.