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About this tool
Compare the cost of closing a loan early with the interest still left on it to see your real net savings.
Loan Foreclosure Savings Calculator works out what closing a loan early actually saves you. It derives your EMI from the outstanding principal, rate and remaining months, totals the interest still to be paid, then subtracts the lender's foreclosure charge and the 18% GST on that fee. A second view compares foreclosing with keeping the loan and investing the same money, so borrowers with a maturing FD or bonus can decide with numbers instead of instinct.
Open Loan Foreclosure Savings Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
The fee and the 18% GST on it are netted off the interest saved, so the number is the real one.
See the wealth you would hold after the same period on each path, starting from the same cash.
Personal, car, education, gold or home loan — enter the outstanding principal, rate and months left.
Personal and consumer loans commonly carry 2-5% of the outstanding principal plus 18% GST on that fee, often with a lock-in of 6-12 EMIs before foreclosure is allowed. Your sanction letter has the exact terms.
RBI does not permit foreclosure or prepayment charges on floating-rate loans sanctioned to individual borrowers for non-business purposes, which covers most home loans. Fixed-rate and business loans can still attract a charge.
Compare the loan rate with the after-tax return you can realistically earn. Interest saved is certain and tax-free in effect; investment returns are neither, so a loan rate above your expected return usually favours foreclosure. This is informational, not investment advice.
Ask for the No Objection Certificate or loan closure letter, the original property or security documents, and confirmation that the lender has updated the closure with the credit bureaus. Check your credit report after 30-45 days.
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