Loan Foreclosure Calculator

Find out what it costs to close a loan today, and how much interest you avoid by doing it.

Amount to close the loan today
₹7,82,623
after 18 EMIs paid
Closing now avoids ₹1,74,439 of future interest at a cost of ₹22,795 — a net gain of ₹1,51,644.
Outstanding principal₹7,59,828
Foreclosure charge₹22,795
Total payable now₹7,82,623
Interest already paid₹1,60,228
Future interest avoided₹1,74,439
Net benefit₹1,51,644

About the Loan Foreclosure Calculator

Foreclosure means paying off the entire outstanding balance in one go and closing the loan ahead of schedule. What you owe is the outstanding principal — not the sum of your remaining EMIs, because those include interest that will never accrue once the loan is closed.

This calculator reconstructs your amortisation schedule to find the balance after the EMIs you have paid, adds any foreclosure charge, and nets it against the future interest you avoid.

The formula

Payoff = Outstanding principal + (Outstanding × foreclosure charge %)
OutstandingBalance from the amortisation schedule after the EMIs paid

Interest that would have accrued in future months is not payable — that is the entire point of foreclosing.

Things worth knowing

1
Ask for a formal foreclosure letter — verbal figures change by the time you pay.
2
Collect the no-dues certificate, the original property or vehicle papers, and the lien release. Chasing them later is painful.
3
Check your credit report a month later to confirm the account shows as closed.

Frequently asked questions

The outstanding principal plus any foreclosure charge, typically 2–5% where one applies. Floating-rate loans to individuals cannot be charged at all under RBI rules.

No. The account closes as fully paid, which is positive. A very short credit history may see a small temporary dip as an active account disappears, but the closure itself is not negative.

The no-dues or no-objection certificate, all original title or vehicle documents, the lien release filed with the registry or RTO, and a statement showing a nil balance.

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