EMI Preclosure Calculator
How much do you actually save by closing your loan early, once the foreclosure charge is netted out?
Banks charge 18% GST on the foreclosure/prepayment fee itself (not on your outstanding balance) — this is standard on any loan-related service charge in India.
Note: under the RBI (Pre-payment Charges on Loans) Directions, 2025, floating-rate loans to individuals for non-business purposes (home, personal, education loans) sanctioned or renewed on or after 1 January 2026 carry zeroprepayment or foreclosure charge, in part or in full. This mostly leaves fixed-rate loans, older loans sanctioned before the rule, and some business loans still subject to a charge — check your loan’s sanction letter or Key Facts Statement.
Where the numbers come from
Continue paying vs foreclose now
| Metric | Continue Loan | Foreclose Now |
|---|---|---|
| Remaining Principal | ₹14,08,149 | ₹14,08,149 |
| Remaining Interest Cost / Charges | ₹11,78,484 | ₹33,232 |
| Total You'll Pay From Today | ₹25,86,633 | ₹14,41,381 |
Original schedule if you keep paying
Hover or tap a year to see the exact principal / interest / balance split. Grouped by year — expand a year in the table below for the month-by-month breakdown.
Schedule Until Foreclosure
| Year | Opening Balance | Principal Paid | Interest Paid | Extra Paid | Closing Balance |
|---|---|---|---|---|---|
| ▾ Year 1 | ₹15,00,000 | ₹43,527 | ₹1,55,445 | — | ₹14,56,473 |
| Month 1 | ₹15,00,000 | ₹3,456 | ₹13,125 | — | ₹14,96,544 |
| Month 2 | ₹14,96,544 | ₹3,486 | ₹13,095 | — | ₹14,93,058 |
| Month 3 | ₹14,93,058 | ₹3,517 | ₹13,064 | — | ₹14,89,541 |
| Month 4 | ₹14,89,541 | ₹3,547 | ₹13,033 | — | ₹14,85,994 |
| Month 5 | ₹14,85,994 | ₹3,579 | ₹13,002 | — | ₹14,82,415 |
| Month 6 | ₹14,82,415 | ₹3,610 | ₹12,971 | — | ₹14,78,805 |
| Month 7 | ₹14,78,805 | ₹3,641 | ₹12,940 | — | ₹14,75,164 |
| Month 8 | ₹14,75,164 | ₹3,673 | ₹12,908 | — | ₹14,71,490 |
| Month 9 | ₹14,71,490 | ₹3,705 | ₹12,876 | — | ₹14,67,785 |
| Month 10 | ₹14,67,785 | ₹3,738 | ₹12,843 | — | ₹14,64,047 |
| Month 11 | ₹14,64,047 | ₹3,771 | ₹12,810 | — | ₹14,60,277 |
| Month 12 | ₹14,60,277 | ₹3,804 | ₹12,777 | — | ₹14,56,473 |
| ▸ Year 2 | ₹14,56,473 | ₹48,324 | ₹1,50,648 | — | ₹14,08,149 |
Instead of 13 yr of remaining payments, one final payment of ₹14,41,381 closes the loan completely.
Why this isn’t just “pay it off early is always better”
Closing a loan early always saves future interest — but if there’s a foreclosure charge, that saving isn’t automatically free money. This calculator nets the two against each other using your loan’s actual remaining schedule, not a rough estimate, so you can see whether foreclosing today is genuinely worth it.
Common mistake
Many borrowers don’t realise that as of the RBI (Pre-payment Charges on Loans) Directions, 2025 (effective for loans sanctioned or renewed on or after 1 January 2026), floating-rate loans to individuals for non-business purposes cannot carry a foreclosure or prepayment penaltyat all — no minimum lock-in, no restriction on the source of funds used to prepay. Banks sometimes still apply a charge out of habit or to loans this rule doesn’t cover (older sanctions, fixed-rate loans). Always check your loan’s Key Facts Statement before assuming this calculator’s foreclosure charge slider applies to you — for most floating-rate loans taken today, it should be set to 0%.