Loan Amortization Calculator
An amortization schedule opens the black box between the EMI and the balance: every instalment splits into interest and principal, and the split shifts each month. Borrowers who read one understand why early payments feel pointless, when extra money actually helps, and how fast the debt really shrinks. This page builds that schedule for your loan and charts it.
Enter values
Results
- Interest as a share of every rupee repaid
- 45.23%
- Monthly EMI
- ₹25,356.66
- Total interest
- ₹20,64,199.63
- Balance halves in
- Year 10
- Principal repaid
- Interest paid
How is the Loan Amortization calculated?
Enter the principal, the annual reducing rate and the tenure in years — loans of a year or less are broken out month by month instead of by year. Each row shows the principal repaid, the interest charged and the closing balance, with totals underneath. Two summary figures lead: the share of every repayment that is interest, and the year the balance first drops below half.
Formula
Each period: interest = opening balance × r, where r is the monthly rate (annual ÷ 12 ÷ 100); principal repaid = EMI − interest; closing balance = opening − principal, with EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). Interest share = total interest ÷ (EMI × n) × 100. The schedule is simply that loop applied n times.
Example
₹25,00,000 at 9% for 15 years gives an EMI of ₹25,356.66 across 180 instalments. Year one charges ₹2,21,646.55 of interest while only ₹82,633.43 reduces principal, leaving ₹24,17,366.57 outstanding — 72.8% of that year's payments were the bank's share. Overall you repay ₹45,64,199.63, of which ₹20,64,199.63 (45.23%) is interest, and the balance first falls below half in year 10.
Things to remember
Use the schedule to aim extra payments: the sooner the balance falls, the less interest every later instalment carries. Compare your own bank statement against these rows once a year to catch rate changes or posting errors, and remember a floating rate reshapes the tail of the schedule whenever the lender reprices.
Frequently Asked Questions
What does an amortization schedule show?
One row per period — month or year — listing the principal repaid, the interest charged and the balance after the payment. Totals underneath give the full cost, and the pattern shows the split moving from interest-heavy to principal-heavy as the loan ages.
Why is most of my first EMI interest?
Interest is always computed on the opening balance, which is largest at the start. On ₹25,00,000 at 9%, year one takes ₹2,21,646.55 of interest against ₹82,633.43 of principal — 72.8% of your payments. The share only shifts once the balance begins to shrink properly.
Can I build a loan schedule in Excel?
Yes. Keep the monthly rate and instalment count in two cells, then =PMT(rate, months, −principal) returns the EMI and =IPMT / =PPMT return the interest and principal of any period. Drag the row down for the full schedule, or skip the spreadsheet and use this calculator.
How often does my bank send an amortization statement?
Most Indian lenders send a repayment statement each financial year showing opening balance, principal, interest and closing figures — useful for tax filing and audits. You can also request the schedule at any time, and this calculator reproduces it for the current rate.
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- Loan Prepayment CalculatorLoan & EMISee how much interest a lump sum or an extra EMI a year saves and how much sooner the loan clears.
- Loan Tenure CalculatorLoan & EMIFind how many months a loan takes to clear at your EMI, with total interest and the final instalment.