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
₹54.14 L
51.99% of total
Total Repayment
₹1.04 Cr
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 |
|---|---|---|---|---|---|
| 1 | ₹50 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% |
Amortization Schedule by Loan Type
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.
Related Calculators
EMI Calculator
Calculate your Equated Monthly Instalment for home, car, or personal loans.
Loan Eligibility
Find out the maximum home loan you are eligible for based on income, existing EMIs, and loan tenure.
Loan Compare
Compare two loans side by side - EMI, total interest, and total payment. Find which loan costs less overall.
Frequently Asked Questions
What is a loan amortization schedule?+
An amortization schedule is a complete table of every loan payment over the loan's life. For each EMI, it shows how much goes to interest, how much reduces the principal, and the outstanding balance after the payment. It also shows cumulative principal and interest paid to date. The schedule makes visible what your bank statement hides: that in the early years, the vast majority of each EMI is interest, not debt reduction. This is why borrowers who check their outstanding balance after 5 years of payments are often surprised how little principal they have repaid.
Why does so much of my early EMI go toward interest?+
Because interest is calculated monthly on the outstanding balance, which is at its maximum when the loan starts. On a 50 lakh home loan at 8.5% for 20 years, the EMI is about 43,400. In month 1, the interest is 35,400 (50L x 8.5%/12) and only 8,000 goes toward reducing principal. As the balance slowly falls over years of repayment, the interest portion of each EMI shrinks and the principal portion grows. This is called negative amortization in reverse, and it means the first several years of a long loan are almost entirely 'renting money' from the bank.
What is the break-even year in an amortization schedule?+
The break-even year is when cumulative principal paid equals cumulative interest paid to date. On most long-tenure home loans at 8-9%, this happens around year 8-10. Before the break-even, the majority of every EMI has gone to interest. After it, you are primarily paying down the loan balance. The break-even year is the most strategically important data point in an amortization schedule: prepaying before this point saves the most total interest, because you are cutting off the portion of the schedule where interest dominates.
How does prepayment affect my amortization schedule?+
A lump sum prepayment directly reduces the outstanding principal balance, which immediately reduces all future monthly interest charges. You can choose to keep the EMI the same and reduce tenure (the mathematically optimal choice - you pay off faster and save the most interest) or keep the tenure the same and reduce the monthly EMI (better for cash flow). Even a single prepayment of 5-10% of the original loan in years 1-3 can cut 2-3 years off a 20-year home loan and save several lakhs in total interest. Use the Prepayment tab to simulate the exact savings.
Can I download the amortization schedule?+
Yes - use the Excel download button (the arrow icon in the schedule header) to export the complete month-by-month schedule as an .xlsx file. The file includes month number, date, EMI amount, principal component, interest component, and outstanding balance for every payment. You can open it in Excel, Google Sheets, or any spreadsheet application to do further analysis - for example, modelling different prepayment scenarios, planning for floating rate changes, or calculating the outstanding balance at any future date.
How do I use the amortization schedule to decide if refinancing is worth it?+
Look at the outstanding balance on your current schedule at the month you plan to refinance. That is the new loan amount. Calculate the new EMI at the refinanced rate and remaining tenure. Compare total future payments under the new loan versus total remaining payments under the current loan. Also factor in: processing fee (typically 0.5-1% of the new loan amount), time to recoup the fee through monthly savings, and whether you lose any prepayment you have already made. A rate reduction of 0.5% on a 40 lakh outstanding balance over 15 remaining years saves roughly 4-5 lakh in interest - well above typical refinancing costs.
How does a floating vs fixed rate loan affect my amortization schedule?+
A fixed rate loan has a static amortization schedule - every EMI, principal, and interest payment is predetermined and does not change for the entire tenure. A floating rate loan's amortization schedule is revised whenever the interest rate changes. In India, most home loans are floating rate loans linked to the lender's MCLR or the RBI repo rate (RLLR - Repo-Linked Lending Rate, mandatory for all new floating rate home loans since October 2019). When rates rise, banks typically keep your EMI the same and extend your tenure - your amortization schedule now ends later than planned. When rates fall, the reverse happens. Floating rate loans benefit from rate cuts (your interest cost drops) but you bear the risk of rate increases (you pay more interest, usually via a longer tenure). This calculator uses a fixed rate for simplicity - for floating rate loans, recalculate every time your rate changes.