Loan Amortization Calculator
Month-by-month breakdown of your loan repayment
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Monthly EMI
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Total Principal
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Total Interest
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Total Payment
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What is loan amortization?
Loan amortization is the process of paying off a loan through regular monthly EMI payments over a fixed period. Each payment covers both interest and principal — early payments are mostly interest, while later payments are mostly principal. An amortization schedule shows exactly where every rupee of your EMI goes.
Formula used
EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1]
For each month:
Interest portion = Remaining balance × monthly rate
Principal portion = EMI − Interest portion
New balance = Previous balance − Principal portion
Where:
P = Loan amount, r = monthly rate = annual rate ÷ 12 ÷ 100
n = total months
How to use this calculator
- Enter loan amount
- Enter annual interest rate
- Enter tenure in months
- Click Generate Schedule — full month-by-month breakdown appears below
Example
Example — ₹30 lakh home loan at 8.5% for 20 years:
EMI = ₹26,035/month | Total paid = ₹62.5L | Total interest = ₹32.5L
| Period | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| Month 1 | ₹26,035 | ₹4,285 | ₹21,250 | ₹29,95,715 |
| Month 60 (yr 5) | ₹26,035 | ₹6,800 | ₹19,235 | ₹25,90,000 |
| Month 120 (yr 10) | ₹26,035 | ₹10,200 | ₹15,835 | ₹18,70,000 |
Key insight: In month 1, only ₹4,285 of ₹26,035 reduces the loan! The best time to make prepayments is in the first 5–7 years when most of your EMI is interest.
Frequently asked questions
The bank reduces either your EMI or your tenure. Always ask to reduce tenure — this saves significantly more interest. Most banks allow prepayment without penalty on floating rate home loans.
Shorter tenure = higher EMI but much less total interest. Longer tenure = lower EMI but significantly more interest. If you can afford the higher EMI, always choose shorter tenure.
Reducing balance (used here) calculates interest on the outstanding principal each month. Flat rate calculates on the original principal throughout. Always compare loans on reducing balance basis — flat rate loans are far more expensive.