Loan amortization schedule

What an amortization schedule shows

An amortization schedule lists every instalment of a loan and splits it into two parts: the interest for that month and the principal it repays. The EMI stays the same, but the split changes. In the early years most of the EMI goes to interest; towards the end, most of it repays principal.

That is why prepaying a loan early in its life saves far more interest than prepaying near the end, and why the outstanding balance falls slowly at first.

How to use this calculator

1. Enter the loan amount in ₹ lakh.
2. Enter the interest rate a year and the tenure in months (for example, 180 months for 15 years).
3. Read the year-by-year table, or open Show every month for the full schedule.

The formula

• EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly rate (annual rate ÷ 12) and n the number of EMIs
• Interest for a month = Outstanding balance × r
• Principal repaid = EMI − Interest
• New balance = Old balance − Principal repaid

Worked example

A ₹25 lakh home loan at 9.5% for 15 years (180 months):

• EMI: ₹26,106
• Interest paid in year 1: ₹2,34,112, out of ₹3,13,267 paid in EMIs that year
• Balance still outstanding after 5 years: ₹20,17,474
• Total interest over 15 years: ₹21,99,011, almost as much as the loan itself

For a quick EMI figure without the schedule, use the EMI calculator.

Frequently asked questions

Why does the balance fall so slowly at first? Interest is charged on the outstanding balance, which is highest at the start. So the early EMIs are mostly interest.

Does a bank's schedule match this one exactly? It will be very close. Small differences come from rounding, the date of disbursement (broken-period interest) and rate changes on floating-rate loans.

What happens if the interest rate changes? On a floating-rate loan, banks usually keep the EMI the same and change the tenure, or change the EMI if you ask. Re-run the schedule with the new rate and the current outstanding balance.