Use this free online amortization calculator to work out your monthly EMI, total interest payable, and total repayment on a loan, complete with a full month-by-month amortization schedule showing the principal and interest split of every installment.
How to Use the Amortization Calculator
Enter the loan principal in the "Loan Amount (₹)" field.
Enter the yearly rate in "Annual Interest Rate (%)".
Enter the loan length in months in "Loan Tenure (months)".
Click "Calculate" to see the Monthly EMI, Total Interest Payable, and Total Payment.
Scroll the results table to review the month-by-month principal, interest, and balance breakdown.
What an Amortization Schedule Shows
Amortization means paying off a loan through equal instalments that each contain some interest and some principal. The EMI stays the same every month, but the mix changes: interest is charged only on the balance still outstanding, so early instalments are mostly interest and later ones are mostly principal.
The schedule above repeats three steps for every month: interest = opening balance × annual rate ÷ 12 ÷ 100; principal repaid = EMI − interest; closing balance = opening balance − principal repaid. Each figure is shown to two decimals, so adding a column by hand can differ from the totals by a few paise.
Worked Example: ₹10 Lakh at 9% for 10 Years
Enter ₹10,00,000, 9% and 120 months. The EMI comes to ₹12,667.58, total payment to ₹15,20,109.29 and total interest to ₹5,20,109.29. In month 1, interest is 10,00,000 × 0.75% = ₹7,500, so only ₹5,167.58 of the first EMI reduces the loan. Summing the schedule year by year shows how the balance falls slowly at first and faster later:
Year
Principal repaid
Interest paid
Balance at year end
1
₹64,634
₹87,377
₹9,35,366
2
₹70,697
₹81,314
₹8,64,669
3
₹77,329
₹74,682
₹7,87,340
5
₹92,517
₹59,494
₹6,10,240
7
₹1,10,689
₹41,322
₹3,98,355
10
₹1,44,853
₹7,158
₹0
After five of the ten years, about 39% of the loan has been repaid, not half. Figures are rounded to the nearest rupee.
Putting the Schedule to Use
Plan prepayments. Extra payments go straight to principal, and they save the most interest when made early. In the example, a one-time ₹1,00,000 prepayment after the 12th EMI, with the EMI kept unchanged, closes the loan in about 104 months instead of 120 and saves roughly ₹1.11 lakh of interest. This tool does not model prepayments itself; the figures come from re-running the same month-by-month method.
Check your bank statement. Lenders issue a repayment schedule at disbursement. If your loan has a fixed rate, it should be close to this one; small differences come from the date of the first EMI and broken-period interest.
Floating rates. Most Indian home loans are linked to an external benchmark such as the repo rate, so the rate can change during the loan. Banks usually adjust the tenure rather than the EMI. Re-run the calculator with the new rate, the current outstanding balance and the remaining months to see the effect.
Tax planning. For a home loan, the interest and principal columns are the figures that matter for any deductions you claim. Whether you can claim them depends on the tax regime you choose and current law, so confirm with the Income Tax Department website or a tax adviser.
Frequently Asked Questions
It uses the standard reducing-balance EMI formula: EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1], where P is the Loan Amount, r is the Annual Interest Rate divided by 12 and by 100 (the monthly rate), and n is the Loan Tenure in months. If the interest rate is 0%, the EMI is simply the loan amount divided by the tenure.
For every month, the interest portion is the outstanding balance multiplied by the monthly interest rate, the principal portion is the fixed EMI minus that month's interest, and the new balance is the previous balance minus the principal portion. The balance is forced to zero on the final month to account for rounding.
Interest each month is charged on the full outstanding balance, which is highest at the start. As the balance falls, the interest part shrinks and more of the same EMI goes to principal. On a long loan at a higher rate, the crossover point where principal exceeds interest can come several years in.
Keeping the EMI the same and shortening the tenure saves more interest, because the loan is cleared sooner. Reducing the EMI eases monthly cash flow but saves less. You can compare both by running the calculator on the reduced balance with the old remaining months (lower EMI) and then trying fewer months until the EMI matches your current one.
No. It covers only the loan amount and interest. Processing fees, loan insurance premiums and other charges are extra. If the lender adds an insurance premium to the loan amount, include it in the amount you enter so the EMI matches.