Amortization Calculator
See how much of each EMI goes to principal and interest.
Last updated: Aug 3, 2026
Disclaimer: Results here are estimates for general understanding only and are not financial, tax, investment or legal advice. Figures assume constant rates and inputs, and may differ from your bank, lender or tax department calculations. Always verify with official sources or a qualified professional before making any financial decision.
01
Loan Amortization
$$ \text{Interest portion} = \text{Outstanding} \times r $$
Step 1
$$ \text{EMI is fixed} $$
Calculated from principal, rate and tenure.
Step 2
$$ \text{Interest} = \text{balance} \times \text{monthly rate} $$
First months are interest-heavy.
Step 3
$$ \text{Principal} = \text{EMI} - \text{Interest} $$
Reduces outstanding balance each month.
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| Year | Principal | Interest | Balance |
|---|
About Amortization Calculator
An amortization schedule shows how each EMI is split between interest and principal repayment. In the early years of a home or car loan, a large share of the EMI goes toward interest. This calculator generates a year-wise summary so you can see the balance reduction and decide when prepayments will save the most interest.
Useful for home loans, personal loans and auto loans in India. All figures are estimates based on constant interest rate and no prepayments.
Practical Tips (India)
Tip 1: Prepay early in the tenure — interest saved is highest in the first few years when the balance is largest.
Tip 2: Home loan interest up to ₹2 lakh/year (new regime) is tax-deductible under Section 24(b); factor it into true cost.
Tip 3: Many Indian banks allow part-prepayment of floating-rate home loans without penalty; check your terms.
Frequently Asked Questions
Why is interest high in the beginning?
Interest is charged on the outstanding principal. Early on the balance is highest, so interest portion is largest. As principal reduces, interest falls.
How does prepayment help?
Any extra payment reduces outstanding principal immediately, cutting future interest. Paying early in the loan tenure saves the most money.
Can I get a full month-by-month schedule?
This version shows yearly totals for clarity. Banks provide detailed monthly schedules in the loan agreement or net-banking portal.
Does floating rate change the schedule?
Yes. When the interest rate changes, the remaining schedule is recalculated. This tool assumes a fixed rate throughout.
Is this the same as bank amortization?
The method is identical (reducing balance). Minor differences can appear due to rounding or exact day-count conventions used by a particular bank.