worldofcalcsLoan Amortization Calculator
Monthly EMI
₹26,035
Total interest
₹32,48,327
Total amount paid
₹62,48,327
- In year 1, 81% of what you pay is interest.
- From month 143 (year 12), more of each EMI repays the loan than pays interest.
- Half the loan is repaid by the end of year 14.
Repayment schedule
| Year | Principal | Interest | Balance | Loan repaid |
|---|---|---|---|---|
| 1 | ₹59,707 | ₹2,52,709 | ₹29,40,293 | 2.0% |
| 2 | ₹64,984 | ₹2,47,432 | ₹28,75,309 | 4.2% |
| 3 | ₹70,728 | ₹2,41,688 | ₹28,04,580 | 6.5% |
| 4 | ₹76,980 | ₹2,35,436 | ₹27,27,600 | 9.1% |
| 5 | ₹83,785 | ₹2,28,632 | ₹26,43,815 | 11.9% |
| 6 | ₹91,190 | ₹2,21,226 | ₹25,52,625 | 14.9% |
| 7 | ₹99,251 | ₹2,13,166 | ₹24,53,374 | 18.2% |
| 8 | ₹1,08,024 | ₹2,04,393 | ₹23,45,351 | 21.8% |
| 9 | ₹1,17,572 | ₹1,94,844 | ₹22,27,779 | 25.7% |
| 10 | ₹1,27,964 | ₹1,84,452 | ₹20,99,815 | 30.0% |
| 11 | ₹1,39,275 | ₹1,73,141 | ₹19,60,540 | 34.6% |
| 12 | ₹1,51,586 | ₹1,60,831 | ₹18,08,954 | 39.7% |
| 13 | ₹1,64,985 | ₹1,47,432 | ₹16,43,969 | 45.2% |
| 14 | ₹1,79,568 | ₹1,32,849 | ₹14,64,402 | 51.2% |
| 15 | ₹1,95,440 | ₹1,16,977 | ₹12,68,962 | 57.7% |
| 16 | ₹2,12,715 | ₹99,701 | ₹10,56,247 | 64.8% |
| 17 | ₹2,31,517 | ₹80,899 | ₹8,24,730 | 72.5% |
| 18 | ₹2,51,981 | ₹60,435 | ₹5,72,749 | 80.9% |
| 19 | ₹2,74,254 | ₹38,163 | ₹2,98,495 | 90.1% |
| 20 | ₹2,98,495 | ₹13,921 | ₹0 | 100.0% |
What is loan amortization?
Amortization is how a loan is paid off through equal EMIs. Each EMI first pays the month's interest on the balance you still owe, and the rest repays the loan. Early on the balance is large, so most of the EMI is interest. As the balance falls, the interest part shrinks and more of each EMI repays the loan. This calculator shows that split for every year or month of your loan.
EMI and amortization formulas
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) · Interest = balance × r · Principal = EMI − interest
P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of months. Each month, the interest is charged on the balance left after the previous EMI.
Using the schedule
- Prepaying early saves the most interest, because the balance, and the interest charged on it, is highest in the first years.
- A longer tenure lowers the EMI but sharply raises total interest: 30 years instead of 20 adds about ₹20.6 lakh on this loan.
- On a home loan, the principal you repay counts under Section 80C (up to ₹1.5 lakh) and the interest under Section 24(b) (up to ₹2 lakh) in the old tax regime. The yearly columns give both figures.
- When a floating rate rises, banks usually extend the tenure rather than raise the EMI, which can add years of payments. Check your latest schedule from the bank.
- This schedule assumes the rate stays the same and EMIs start a month after disbursement. Your bank's schedule may differ slightly because of pre-EMI interest or rounding.
Worked example: ₹30 lakh home loan
- Loan ₹30,00,000 at 8.5% for 20 years (240 months)
- EMI: ₹26,035 a month
- Month 1: ₹21,250 is interest (₹30,00,000 × 8.5% ÷ 12) and only ₹4,785 repays the loan
- In year 1 you pay ₹3,12,416, of which ₹2,52,709 (81%) is interest
- Principal overtakes interest only in month 143, almost 12 years in
- Total interest over 20 years: ₹32,48,327, more than the loan itself
₹30 lakh at 8.5%: how the tenure changes things
EMI, total interest, interest share in the first year and the month principal overtakes interest.
| Tenure | EMI | Total interest | Interest in year 1 | Principal overtakes interest |
|---|---|---|---|---|
| 10 years | ₹37,196 | ₹14,63,485 | 55% | Month 23 |
| 15 years | ₹29,542 | ₹23,17,594 | 71% | Month 83 |
| 20 years | ₹26,035 | ₹32,48,327 | 81% | Month 143 |
| 25 years | ₹24,157 | ₹42,47,044 | 87% | Month 203 |
| 30 years | ₹23,067 | ₹53,04,266 | 92% | Month 263 |
Rate held at 8.5% for the whole term.