Loan Closure Calculator
Prepay, reduce EMI, reduce tenure, or close your loan — see what saves the most.
Compare prepayment savings, EMI reduction, tenure reduction, and full foreclosure impact before making a loan decision.
Private by default. Runs in your browser.
Payoff path
Loan
Prepay
Save
Close
Your loan details
Edit the core loan numbers directly, then choose a payoff goal.
Used for debt pressure
These supporting values refine debt pressure and recommendation quality.
All calculations are estimates. Actual terms may vary by lender.
Choose your payoff goal
What do you want to do?
Pick one goal. The recommendation and inputs below will change with your choice.
PayVerdict recommendation
Make extra payments to save interest.
A ₹5,000 monthly extra payment can reduce interest without needing full closure.
Best move: use spare monthly cash to reduce principal faster.
Interest saved
₹11.2L
Finish earlier
3 yr 11 mo
New tenure
12 yr 11 mo
Debt pressure: 40.0% of income including existing EMIs.
Based on EMI, monthly income, and existing EMIs.
Save interest details
See how one-time and monthly extra payments reduce your interest and tenure.
Tip: Extra payments reduce principal faster, which lowers future interest.
Current plan vs extra payment
With extra payments, your interest drops from ₹39.7L to ₹28.4L and the loan closes 3 yr 11 mo earlier.
Interest saved
₹11.2L
Time saved
3 yr 11 mo
New tenure
12 yr 11 mo
was 16 yr 10 mo
New total interest
₹28.4L
was ₹39.7L
| Metric | Current plan | With extra payment | You save |
|---|---|---|---|
| Total interest | ₹39.7L | ₹28.4L | ₹11.2L |
| Loan closes | 16 yr 10 mo | 12 yr 11 mo | 3 yr 11 mo |
A ₹5,000 monthly extra payment can save ₹11.2L and close your loan 3 yr 11 mo earlier.
Loan payoff basics
Should you prepay or close your loan?
Should you prepay or close your loan?
Prepayment reduces outstanding principal, reducing tenure usually saves more interest, reducing EMI improves monthly cash flow, and full closure can save future interest but uses large cash upfront.
Reduce EMI vs reduce tenure
Reduce EMI when monthly comfort matters. Reduce tenure when your cash flow is stable and you want stronger interest savings.
When does full loan closure make sense?
Full closure may make sense when loan interest is high, emergency funds are safe, foreclosure charges are low, and alternative returns are not clearly better.
How this loan closure calculator helps
Estimate prepayment savings, compare reduce EMI vs reduce tenure, estimate closure cost, see future interest avoided, and understand payoff trade-offs before talking to your lender.
Frequently asked questions
What is a loan closure calculator?
A loan closure calculator estimates whether prepayment, reducing EMI, reducing tenure, or fully closing a loan saves more money.
What is loan prepayment?
Loan prepayment means paying an extra amount towards your outstanding principal before the scheduled EMI date or tenure ends.
Should I reduce EMI or reduce tenure after prepayment?
Reducing tenure usually saves more interest, while reducing EMI improves monthly cash flow. The better choice depends on income comfort and emergency funds.
Does prepayment always save interest?
Prepayment usually reduces interest on reducing-balance loans, but fees, timing, and lender rules can affect the final savings.
What is a foreclosure charge?
A foreclosure charge is a fee some lenders apply when you close a loan before the original tenure ends.
Is it better to close a loan early or invest the money?
It depends on loan rate, foreclosure charges, emergency fund needs, and expected investment returns. Compare both before deciding.
Can this calculator be used for home loans and personal loans?
Yes. It can estimate payoff choices for home loans, personal loans, car loans, education loans, and business loans.
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PayVerdict provides estimates for educational purposes only. Actual EMI, interest savings, foreclosure charges, and loan terms may vary based on lender terms, loan type, rate type, fees, and policy changes. Please consult your lender or a qualified financial professional before making loan decisions.