Foreclosing a loan means paying off the entire remaining balance in one go rather than continuing with scheduled EMIs. This calculator estimates the payoff amount and the interest saved compared with completing the original tenure.
How to Use This Calculator
- Enter your original loan details and how many EMIs you have already paid (or your current outstanding balance directly).
- Enter any foreclosure charge percentage your lender applies.
- View the total foreclosure payoff amount and interest saved versus completing the full tenure.
How the Calculation Works
The outstanding principal is computed from the amortization schedule up to the closure month. Foreclosure Payoff = Outstanding Principal + (Outstanding Principal × Foreclosure Charge %). Interest saved = interest that would have been paid on remaining EMIs minus the foreclosure charge.
Worked Example
See the calculator above using your specific outstanding balance and lender's foreclosure charge — results vary significantly based on how far into the loan tenure you are.
Who Should Use This
Borrowers considering closing a loan early using savings, a bonus, or funds from another source, who want to know the exact payoff cost and interest saved.
Important Considerations
Foreclosure charges vary by lender and loan type, and regulations restrict such charges on floating-rate loans for individual borrowers in many cases — always get the exact foreclosure quote from your lender, since this calculator only estimates based on the inputs you provide.
Common Mistakes
Forgetting to include the foreclosure charge (where applicable) understates the true payoff cost — always check your loan statement or lender for the exact charge percentage.
References
See also the Home Loan Prepayment Calculator for partial (rather than full) early payments.