Amortization Calculator
See the full year-by-year repayment breakdown of any loan, with optional extra payments.
Last updated: August 2026
Extra payments go straight to principal and shorten the loan.
Monthly payment
₹6,199.28
Total interest
₹2,43,914
Over 120 months
Total paid
₹7,43,914
Principal + interest
Amortization summary (120 months)
| Year | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | ₹41,228 | ₹33,164 | ₹4,66,836 |
| Year 2 | ₹38,296 | ₹36,095 | ₹4,30,741 |
| Year 3 | ₹35,106 | ₹39,285 | ₹3,91,456 |
| Year 4 | ₹31,633 | ₹42,758 | ₹3,48,698 |
| Year 5 | ₹27,854 | ₹46,537 | ₹3,02,160 |
| Year 6 | ₹23,741 | ₹50,651 | ₹2,51,510 |
| Year 7 | ₹19,263 | ₹55,128 | ₹1,96,382 |
| Year 8 | ₹14,391 | ₹60,001 | ₹1,36,381 |
| Year 9 | ₹9,087 | ₹65,304 | ₹71,077 |
| Year 10 | ₹3,315 | ₹71,077 | ₹0 |
How it works
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). Each payment: interest = balance × r, principal = EMI − interest.
Example: ₹5,00,000 at 8.5% for 10 years → ₹6,199/month, ₹2,43,936 total interest.
Frequently Asked Questions
What is amortization?
Amortization is the process of paying off a loan with equal monthly payments, where each payment covers the month's interest plus part of the principal. Early payments are mostly interest; later payments are mostly principal.
How do extra payments reduce my loan?
Extra payments go directly against the principal, so the balance falls faster and less interest accrues. Even a small extra amount each month can shave years off the loan and save lakhs in interest.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is largest at the start of the loan. As the balance shrinks, the interest share falls and the principal share grows — that is the standard amortization curve.
What is the difference between amortization and simple interest?
Simple interest is always charged on the original principal, so interest stays constant. Amortized loans charge interest on the reducing balance, so total interest is lower when you prepay.