Foreclosure
Build your plan on the left. Watch it pay off on the right.
No Calculate button — every number updates as you type, and each figure traces back to a row in your schedule.
Your loan
What you owe today
Your prepayments
Lump sums or top-ups
Choose the outcome
Shorter loan or lower EMI
Results, live
No Calculate button
Your loan
What you owe today
Computed from the numbers above.
Your prepayment plan
2 active · ₹17.00 L prepaid over the loan
on 05 Feb 27
On its own: saves ₹14.48 L and 4y 1m off your loan.
from 05 Nov 26
On its own: saves ₹19.77 L and 7y 6m off your loan.
What should prepaying do?
The single most important choice here
Advanced optionsPayment frequency, rate changes, fees — optional
Payment mechanics
Interest rate changes
The EMI is recomputed over the tenure remaining — tenure held, EMI moves. Check your bank's reset letter: on a floating-rate home loan many Indian lenders do the opposite.
Tax relief
Fees & charges
Usually zero — RBI bars these on floating-rate loans to individuals. Include any GST your lender adds.
Net benefit after fees
₹26.49 L
No fees entered, so the whole saving is yours.
Where you stand after
Side by side
Your loan with your plan, and without it
Two futures for the same loan. The right-hand column is the one you're building.
Interest you keep
₹26.49 L
56% less interest than doing nothing
Time you get back
9y 5m
earlier than Sep 2046
Every figure here is the last row of the matching schedule below — nothing is estimated separately.
Visual proof
Your balance reaches zero 9y 5m sooner
The shaded gap is what you no longer owe. At its widest it is ₹30.06 L.
Where each year's instalments go
Interest outweighs principal until 2031 — which is why a prepayment made before then removes the most.
What waiting costs you
What ₹4.50 L removes from your interest bill, by the date you pay it.
Paid now it removes ₹14.92 L. Wait twelve months and it removes ₹13.62 L — ₹1.30 L less for the same money.
Full detail
Every payment, to the rupee
127 payments across 12 years, every rupee accounted for
12 years match
| # | Date | Opening | EMI | Interest | Principal | Prepayment | Closing |
|---|---|---|---|---|---|---|---|
| ₹45,00,000 | ₹1,35,029 | ₹92,591 | ₹42,438 | ₹20,000 | ₹44,57,562 | ||
| ₹44,57,562 | ₹10,30,115 | ₹3,27,619 | ₹7,02,496 | ₹5,70,000 | ₹37,55,066 | ||
| ₹37,55,066 | ₹5,80,115 | ₹2,99,333 | ₹2,80,782 | ₹1,20,000 | ₹34,74,284 | ||
| ₹34,74,284 | ₹5,80,115 | ₹2,75,273 | ₹3,04,843 | ₹1,20,000 | ₹31,69,441 | ||
| ₹31,69,441 | ₹5,80,115 | ₹2,49,150 | ₹3,30,965 | ₹1,20,000 | ₹28,38,476 | ||
| ₹28,38,476 | ₹5,80,115 | ₹2,20,789 | ₹3,59,327 | ₹1,20,000 | ₹24,79,149 | ||
| ₹24,79,149 | ₹5,80,115 | ₹1,89,997 | ₹3,90,118 | ₹1,20,000 | ₹20,89,031 | ||
| ₹20,89,031 | ₹5,80,115 | ₹1,56,567 | ₹4,23,548 | ₹1,20,000 | ₹16,65,483 | ||
| ₹16,65,483 | ₹5,80,115 | ₹1,20,273 | ₹4,59,843 | ₹1,20,000 | ₹12,05,641 | ||
| ₹12,05,641 | ₹5,80,115 | ₹80,868 | ₹4,99,248 | ₹1,20,000 | ₹7,06,393 | ||
| ₹7,06,393 | ₹5,80,115 | ₹38,086 | ₹5,42,029 | ₹1,20,000 | ₹1,64,364 | ||
| ₹1,64,364 | ₹1,66,927 | ₹2,564 | ₹1,64,364 | ₹30,000 | ₹0 | ||
How we calculate
No black box. Six rules produce every number here.
The same six a lender applies to your account each month. Read them, check them against your statement, then trust the schedule.
Interest accrues on your opening balance each period. On the default settings — monthly payments, monthly compounding — that is your annual rate divided by twelve, which is standard reducing balance. Change the payment frequency and the rate is converted so your effective annual rate stays the same.
A prepayment goes entirely to principal. Nothing is applied to interest, which is why the next period costs you less.
No period ever pays more than the balance plus its interest, so the loan settles at exactly zero and can never go negative.
On a rate change the EMI is recomputed over the tenure remaining — tenure held, EMI moves.
Both futures are run through the same engine on the same rate path, so the comparison is fair.
Every headline figure is the last row of its schedule. Nothing on this page is estimated a second way.
Questions people ask
Is foreclosure always better than a large part payment?
Not necessarily. Foreclosure ends the loan, which also ends any tax relief you were claiming on the interest, and it uses cash that might be your only liquidity. A large part payment keeps the account open, keeps the relief running and keeps some flexibility. Compare the two here: model the full balance as a lump sum, then model a smaller one, and read the net benefit for each.
What is the difference between foreclosure and prepayment?
Prepayment is paying extra against principal while the loan continues. Foreclosure is repaying the entire outstanding balance and closing the account. Foreclosure is simply the limiting case of prepayment — which is why the same engine and the same schedule produce both figures on this page.
When would a foreclosure charge still apply?
Chiefly on a fixed-rate loan. Under the RBI (Pre-payment Charges on Loans) Directions, 2025, which cover loans sanctioned or renewed on or after 1 January 2026, an individual's floating-rate loan taken for a purpose other than business carries no pre-payment charge. A fixed-rate loan can, and the charge is then calculated on the amount prepaid — on foreclosure, the whole balance you repay. Enter your lender's percentage under Advanced options to see whether the interest saved still outweighs it.
What should I enter as the outstanding balance?
What you still owe today, from your latest statement — not the amount you originally borrowed. This is the single most common mistake, and it changes every number on the page.
Will my bank charge me to prepay?
On a floating-rate home loan to an individual, almost certainly not. Longstanding RBI guidance already barred foreclosure and prepayment charges on floating-rate home loans to individual borrowers, and the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 widened that for loans sanctioned or renewed on or after 1 January 2026 — for individuals borrowing for purposes other than business, irrespective of the source of the funds, with or without a co-obligant, and with no minimum lock-in. Fixed-rate loans are treated differently and may still carry a charge, calculated on the amount you prepay. Check your sanction letter and your lender's current schedule of charges, then enter anything that applies — including any GST the lender adds to it — under Advanced options, and the net benefit updates. Verified against the 2025 Directions on 10 September 2026.
Why does my bank's number differ slightly?
This calculator uses the standard monthly reducing balance — interest at your annual rate divided by twelve, on the balance at the start of each month — and a prepayment takes effect from your next scheduled payment. Some lenders compute interest on a daily reducing balance with monthly rests, and credit a prepayment on the day you make it. Either way you will save a little more than shown, and the difference is small: at most about one month of interest on the amount prepaid.
Where does my data go?
Nowhere. Every calculation runs in your browser. There is no account, no tracking of your loan values, and no server round-trip to compute any of this.
Why you can check this one
Independent
Not a lender, not a broker, not affiliated with anyone who is. Nothing here is ranked by what it pays us, because nothing pays us. There are no ads and no lead generation.
Checkable
Every figure is the last row of a schedule you can expand, read and download. The rules the engine follows — the rate conversion, the rounding points, how a prepayment is timed — are published in full, along with every place we knowingly differ from a lender.
Honest about limits
It models the loan, not your life. It does not know your lender's exact day-count conventions, your emergency fund or your tax position — and it will tell you when prepayment costs more than it saves rather than showing you a zero.
Nothing you type is sent anywhere. No account, no tracking of your loan details, nothing stored on a server. How that works.
Read the full methodology — the exact rate conversion, where rounding is applied, how we time a prepayment, and every choice we make differently from a lender, with the reasoning for each.
In plain terms
Foreclosing a home loan: the charges, the rules and the paperwork
Closing early is usually worth it. The parts that go wrong are the charges nobody quoted you and the documents nobody sent you.
Foreclosure means repaying the entire outstanding balance and closing the account, rather than prepaying part of it. The interest saved is simply every rupee of interest in the remaining schedule, which on a loan with years left is a large number. Against that sit the costs: any prepayment or foreclosure charge, and any administrative or processing fee the lender applies to closing. This page subtracts both and reports a signed net benefit — if it comes out negative, it says so rather than clamping the figure to zero.
On charges, the regulatory position in India has moved recently and in the borrower's favour. Longstanding RBI guidance already barred lenders from levying foreclosure or prepayment charges on floating-rate home loans taken by individuals. The Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 went further, and apply to loans sanctioned or renewed on or after 1 January 2026 — including, for individuals borrowing for purposes other than business, irrespective of the source of the funds, whether there is a co-obligant, and with no minimum lock-in. Fixed-rate loans are treated differently and may still carry a charge. Verify your own position against your sanction letter and your lender's current schedule of charges before relying on any figure here.
The paperwork is where foreclosures actually go wrong, and none of it is optional. Ask for a foreclosure statement valid to a specific date before you transfer anything, because the payoff amount moves with accrued interest. After payment, collect the No Objection Certificate, the loan closure letter, the original property documents, and confirmation that the lender has released its charge on the property with the registrar and updated the credit bureaus. Chasing original title deeds from a closed account months later is a genuinely difficult problem; collecting them on the day is not.
- Before paying
- A dated foreclosure statement showing the exact payoff amount and its validity date.
- After paying
- NOC, loan closure letter, original property documents, charge release, bureau update.
- Charges to check
- Foreclosure or prepayment charge, and any closure or administrative fee. Enter both under Advanced options.
How it's calculated
The working behind the number
This foreclosure calculator treats closing your home loan as a prepayment of the entire balance on the date you choose. The interest saved is all the interest the remaining schedule would have charged after that payment. It subtracts any prepayment charge, calculated on the amount repaid, and any closure or processing fee, and reports the net benefit with its sign — negative when the charges cost more than the interest saved.
Formula
Net benefit = Interest saved − (Charge % × Balance repaid + Fees)
- Interest saved
- The interest the full schedule would charge after the foreclosure payment.
- Charge %
- The prepayment or foreclosure charge, as a percentage of the amount prepaid.
- Balance repaid
- What is left to repay after the scheduled EMI on or after the date you close.
- Fees
- Any one-off closure, processing or administrative fee.
Assumptions and limits
- Foreclosure is a prepayment of the whole balance at the first scheduled EMI on or after the date you choose; that EMI's interest is still paid.
- The charge is levied on the amount prepaid and paid out of pocket, never added to the balance.
- The net benefit is signed: when charges exceed the interest saved it is shown as a negative figure, not as zero.
- Interest is charged monthly on the reducing balance at the annual rate ÷ 12, rounded to the paisa each month.
- Tax relief you would stop claiming is left out unless you switch it on under Advanced options.
A worked example
Take ₹45,00,000 outstanding at 8.25% a year, with 20 years (240 monthly payments) of tenure left.
- After 5 years (60 payments) the balance is ₹39,52,310.
- Closing the loan then avoids the ₹29.49 L of interest the remaining payments would carry.
- On a floating-rate loan to an individual that closure carries no charge. At a 2% fixed-rate charge it costs ₹79,046.
Net of that charge, closing early saves ₹28.70 L.
Computed by the calculator on this page, from the figures it opens with.
Sources
By The CutYears team · Last reviewed 10 September 2026 · Full methodology