Amortization Calculator
See the full year-by-year repayment breakdown of any loan, with optional extra payments. Track principal, interest and balance over time.
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.
Last updated: August 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use the amortization calculator when a lender hands you a repayment schedule you want to verify line by line, or when you are comparing two loan offers with different tenures and extra-payment options. Home loan borrowers in India use it to see how much of each EMI is interest in the early years, which is the reality behind the common belief that the first payments are mostly interest. It is also the right tool for planning prepayments: enter an occasional lump-sum extra payment and watch the total interest and payoff date change. Anyone considering a personal loan, car loan or business loan can check the year-by-year principal and balance before signing, so the total cost of the loan is known in advance, not discovered after a decade of EMIs.
How to Use This Calculator
- Step 1: Enter the loan amount, the annual interest rate and the tenure in years or months.
- Step 2: Enter an optional extra payment amount and choose whether it is a one-time lump sum or a recurring monthly addition.
- Step 3: Read the monthly payment and the total interest, then open the schedule to see the year-by-year breakdown.
- Step 4: Compare the standard schedule against the extra-payment schedule to see the new payoff date and the interest saved.
Worked Example
A small business in Surat borrows ₹10,00,000 at 10% per year for 5 years. Enter 1000000 as the principal, 10 as the annual rate and 5 as the tenure. The monthly payment is about ₹21,247, and the schedule shows each year's principal and interest split. Over 60 instalments the total interest is about ₹2,74,823. Adding a one-time extra payment of ₹1,00,000 in the first year shortens the term and cuts the interest, and the updated schedule tracks the new balance year by year.
Tips and Common Mistakes
- •Tip 1: Extra payments in the early years save the most interest, because the balance and the interest on it are largest then.
- •Tip 2: Check whether your loan allows prepayment without penalty; most Indian banks cap prepayment charges on floating-rate loans.
- •Tip 3: Read the running balance column to see how much you still owe at any point, which is useful when planning a full settlement.
- ✗Mistake 1: Entering the extra payment as a yearly figure when the field expects a monthly amount.
- ✗Mistake 2: Assuming total interest is simply the rate times the loan; the schedule is the only accurate way to see the interest actually paid.
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.
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