Loan Foreclosure Calculator

A Loan Foreclosure Calculator helps you estimate the outstanding loan balance and the total interest savings when you repay your loan before the scheduled end date. It shows how much you’ll save and the exact amount needed for early closure.

Formula

Loan foreclosure involves finding the Outstanding Principal at the foreclosure date.
The outstanding balance is calculated using the amortization method:

Where:

• P = Original Loan Amount
• R = Monthly Interest Rate (Annual Interest ÷ 12 ÷ 100)
• N = Total Loan Tenure in Months
• K = Number of EMIs already paid

Interest Saved = Total Interest (Original) − Interest Paid till Foreclosure

Where:

• Outstanding Principal = from EMI formula above
• Foreclosure Rate = lender’s charge % (e.g., 3%)