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.
Loan type
Monthly EMI
₹43,391
Total Interest
₹54.1L
51.99% of total
Total Repayment
₹1.0Cr
Break-even Year
N/A
principal > interest
Amortization Schedule
240 EMIs total
Principal vs Interest paid each year
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance | % Paid off |
|---|---|---|---|---|---|
| 1 | ₹50.00 L | ₹99,511 | ₹4.21 L | ₹49.00 L | 2% |
| 2 | ₹49.00 L | ₹1.08 L | ₹4.12 L | ₹47.92 L | 4% |
| 3 | ₹47.92 L | ₹1.18 L | ₹4.03 L | ₹46.74 L | 7% |
| 4 | ₹46.74 L | ₹1.28 L | ₹3.92 L | ₹45.46 L | 9% |
| 5 | ₹45.46 L | ₹1.40 L | ₹3.81 L | ₹44.06 L | 12% |
About the Loan Amortization Calculator
A loan amortization schedule is the most honest picture of what a loan truly costs. Every EMI looks the same every month, but what is happening inside changes dramatically. In month 1 of a 20-year home loan, roughly 80% of your payment is interest. By month 200, 80% is principal. This inversion happens gradually and is invisible without an amortization table. Understanding this curve is the difference between someone who blindly pays EMIs and someone who knows exactly when to prepay to maximize savings.
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 = cumulative interest paid) is the optimal time to consider prepaying - after this, prepayments save less.
- 2
Prepaying in years 1-5 saves 3-5x more interest than the same prepayment in years 15-18. Time your windfall (bonus, gift) accordingly.
- 3
If you can only afford to prepay once, do it in year 2-3 when the outstanding balance is still near the original loan amount.
- 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% difference saves 5 lakh. Always negotiate rates.
- 5
Check your amortization schedule after every rate change on a floating rate loan. Banks sometimes silently extend tenure instead of reducing EMI after a rate hike.
- 6
The 'outstanding balance at 5 years' column tells you how much you still owe if you need to sell the property or foreclose.
- 7
Never compare loans by EMI alone - two loans with the same EMI can have very different total interest costs if they have different tenures.
Why this matters for you
Most borrowers sign a 20-year home loan and forget about it. An amortization schedule turns the opaque monthly debit into a transparent roadmap - you can see every rupee, every year, until the day the loan is fully repaid. This transparency creates better decisions: when to prepay, whether a refinance makes sense, how much equity you have built up for a top-up loan. For a 50 lakh loan, the difference between an informed borrower and an uninformed one can easily be 10-15 lakh in total interest paid.
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