Loan Amortization Schedule
Generate complete month-by-month loan repayment schedule
Loan Details
Enter loan details and click Generate Schedule
How to Use
- Enter Loan Amount (₹), Annual Interest Rate (%), and Loan Tenure (years).
- Set the Start Month and Year to generate accurate calendar dates for each EMI.
- Click Generate Schedule to see EMI, total interest, and the full month-by-month table.
- The first 12 months are shown expanded; use Show Full Schedule to see all months.
- The Annual Summary shows how principal and interest split changes year by year.
What is Loan Amortization?
Amortization is the process of paying off a loan through regular instalments over time. Each EMI covers two components: interest on the outstanding balance and a principal repayment. Early EMIs are mostly interest; later ones are mostly principal — this is why home loan prepayments made early save far more interest than those made later.
How Each EMI is Split
Monthly Interest = Outstanding Balance × (Annual Rate / 12 / 100)
Principal This Month = EMI − Monthly Interest
New Balance = Outstanding Balance − Principal This Month
Principal This Month = EMI − Monthly Interest
New Balance = Outstanding Balance − Principal This Month
Impact of Prepayment
| ₹50L Loan, 8.5%, 20 years | No Prepayment | ₹5L prepaid at year 5 |
|---|---|---|
| Total Interest | ~₹61.5L | ~₹50L |
| Tenure Saved | — | ~3.5 years |
| Interest Saved | — | ~₹11.5L |
Practical Uses of the Schedule
- Plan ahead for part-prepayments — see exactly how much balance remains at any point.
- Verify your bank statement — each month's principal and interest should match the schedule (minor differences due to rate changes are normal for floating rate loans).
- Calculate foreclosure amount — outstanding principal at any month is shown in the Balance column.
- Useful for tax filing — Section 24(b) allows deduction of home loan interest up to ₹2L.
Frequently Asked Questions
This is how reducing-balance (amortizing) loans work. Interest is charged on the outstanding balance each month. In the first month, the entire loan amount is outstanding, so interest is maximum. As the principal reduces month by month, so does the interest component. This is why prepayment in the first few years saves much more interest than the same prepayment later.
Three strategies: (1) Part-prepayment — even ₹50,000–₹1L annually can save 3–5 years of tenure and lakhs in interest on a home loan. (2) EMI increase — if your salary grows, increase your EMI by 5–10% annually. (3) Balance transfer — if another bank offers 0.5%+ lower rate, refinancing can save significantly on long-tenure loans. The amortization schedule helps you see the exact impact.
Foreclosure amount = outstanding principal balance + any applicable foreclosure charges. The outstanding principal at any month is shown in the 'Balance' column of the amortization table. RBI guidelines mandate that floating-rate home loans from banks have zero prepayment penalty. Fixed-rate loans and loans from NBFCs may have a 2–4% foreclosure charge.
A missed EMI typically results in: (1) the missed amount added to the next EMI, (2) penal interest charged on the missed amount (1–2% per month), and (3) potential negative credit score impact. Most banks allow a grace period of 3–5 days. Some banks restructure the loan — adding missed EMIs to the end of tenure. Contact your bank immediately if you anticipate missing a payment.