Loan Amortization Calculator
Get a full month-by-month loan amortization schedule. See every EMI broken into principal and interest, track your outstanding balance, and find the break-even year.
About the Loan Amortization Calculator
A loan amortization schedule is the most honest picture of what a loan truly costs. Every EMI looks identical from the outside, but what happens inside changes dramatically over time. In month 1 of a 20-year home loan at 8.5%, roughly 82% of your payment goes to interest and only 18% reduces the principal. By month 200, that ratio has flipped. This shift happens so gradually it is invisible without a schedule - which is exactly why most borrowers are shocked when they check their outstanding balance after 5 years of faithful EMI payments and find they have barely dented the principal.
EMI and Amortization Formula
Interest = Balance x r | Principal = EMI - Interest | New Balance = Balance - Principal
r = Monthly interest rate (annual rate / 12 / 100) | Balance = Outstanding loan at start of each period | Repeated for each month until Balance = 0
Worked Example
Home loan of 50 lakh at 8.5% for 20 years
EMI: 43,391 | Month 1 interest: 35,417 | Month 1 principal: 7,974 | Break-even year: Year 10 | Total interest: 54.14 lakh | Outstanding balance at 5 years: 44.9 lakh
Tips & Insights
- 1
The break-even year (when cumulative principal paid equals cumulative interest paid) is the most strategic time to make a large prepayment - it marks the point where your money starts working harder for you.
- 2
Prepaying in years 1-5 saves 3-5x more interest than the same prepayment in years 15-18. Time your windfall (annual bonus, maturity proceeds, gift) accordingly.
- 3
If you can only afford to prepay once, do it in year 2-3 when the outstanding balance is still close to the original loan amount and the interest savings are largest.
- 4
A 50 lakh home loan at 8.5% for 20 years costs 54 lakh in interest. At 8%, it costs only 49 lakh - a 0.5% rate difference saves 5 lakh. Always negotiate rates when you have a good CIBIL score.
- 5
After every RBI rate change, verify with your bank whether your floating rate loan EMI or tenure has changed. Banks sometimes silently extend tenure instead of reducing EMI after a rate hike.
- 6
The closing balance column at year 5 tells you exactly how much equity you have built and what you would owe if you needed to sell, foreclose, or take a top-up loan.
- 7
Never compare two loan offers by EMI alone. A loan with a lower EMI can have a higher total interest if the tenure is longer. Use the total interest column to compare honestly.
- 8
Use the Excel download to share your schedule with family, or import it into a spreadsheet to model your own prepayment scenarios at specific months.
Why this matters for you
Most borrowers sign a 20-year home loan and treat it as a fixed obligation until the balance hits zero. An amortization schedule turns that opaque monthly debit into a transparent roadmap - you can see every rupee, every year, and understand exactly how the bank earns back 40-60% of the loan amount again in interest. For a 50 lakh home loan at 8.5% for 20 years, total interest paid is over 54 lakh - more than the original loan. That number, invisible on the bank's website, is printed clearly here.
The amortization schedule makes prepayment decisions rational rather than intuitive. Without it, borrowers often prepay late in the loan when the outstanding balance is already low and the interest savings are minimal. With it, you can calculate precisely: if I prepay 5 lakh at month 30, I save X lakh in interest and close Y months early. That calculation changes behavior - and for many borrowers, a single well-timed prepayment saves more than years of extra EMI payments would.
For floating rate loans - which account for the majority of home loans in India - the schedule is a living document. Every RBI rate change shifts the balance between principal and interest in each future EMI. Regenerating your amortization schedule after each rate cycle shows you exactly how your total repayment has changed and whether it is worth locking in a fixed rate or refinancing to a different lender.
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