Loan Amortization Calculator
The complete repayment schedule for your loan — every month, showing how much of the payment clears the debt and how much is interest, with the balance left after each one.
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How to use this calculator
- Enter loan amount
- Enter interest rate
- Enter tenure
- Choose show schedule by
- Read the result — it updates as you type.
The formula used
Interest = Balance × i · Principal = EMI − Interest · Balance = Balance − Principal
- i
- Monthly rate = annual ÷ 12 ÷ 100
- EMI
- The fixed monthly payment
These three lines, repeated once per month, are the entire amortisation schedule. Because the balance shrinks each month, the interest portion shrinks too — and since the EMI is fixed, the principal portion must grow by the same amount.
Worked example
A ₹25,00,000 loan at 8.5% for 20 years, EMI ₹21,696.
- Monthly rate8.5 ÷ 12 ÷ 100 = 0.70833%
- Month 1 interest₹25,00,000 × 0.70833% = ₹17,708
- Month 1: principal = ₹21,696 − ₹17,708 = ₹3,988; balance = ₹24,96,012
- Month 2: interest = ₹24,96,012 × 0.70833% = ₹17,680
- Month 240: almost the entire payment clears principal, balance = ₹0
In the first year you repay only about ₹49,000 of a ₹25 lakh loan — the other ₹2.11 lakh paid is interest.
Reading an amortisation schedule
An amortisation schedule is the loan's whole life on one page. It is worth reading before you sign, because the shape of it surprises most borrowers.
The front-loaded reality
Interest is charged on what you still owe, and at the start you owe everything. That is why early payments barely dent the balance. It is not a trick by the bank — it is arithmetic — but it does mean the first years of a long loan buy you very little equity.
Two practical uses
- Deciding when to prepay. Look at the interest column: prepaying while those numbers are large removes the most future cost.
- Checking your bank's statement. Compare their schedule with this one. Small differences are normal; large ones are worth questioning.
Tax note for home loans
Deductions for principal and interest are claimed separately, so the yearly split shown here is exactly the breakdown you need at filing time.
Tips and common mistakes
Getting more out of it
- Switch to the monthly view and check the first year — most borrowers are surprised how little principal it clears.
- Keep the yearly split for tax time; home loan principal and interest are claimed separately.
Mistakes to avoid
- Assuming the loan halves in cost at the halfway point. It does not — the balance falls slowly at first.
- Expecting the schedule to match the bank exactly. Rounding and disbursal dates cause small differences.
- Overlooking that any prepayment rewrites the entire schedule from that month onwards.
Frequently asked questions
What does amortisation mean?
Spreading a loan into equal payments that gradually pay off both interest and principal, ending at a zero balance.
Why is so little principal repaid at first?
Because interest is charged on the outstanding balance, which is at its largest at the beginning. As the balance falls, the interest portion of each payment falls with it.
Can I see every single month?
Yes — switch "Show schedule by" to Month. For a 20-year loan that is 240 rows; use the "show all" button under the table.
Does the schedule change if I prepay?
Yes, substantially. Use the Prepayment Calculator to see the new tenure and the interest saved.
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