How does loan amortization work?

Each month, interest is charged on the outstanding balance at one-twelfth of the annual rate. The EMI pays that interest first, and the rest reduces the principal. Because the balance keeps falling, the interest in each EMI falls too, so more of every later EMI goes to principal until the balance reaches zero on the final EMI.

What is the loan amortization formula?

The EMI formula is EMI = P x R x (1+R)^N / [(1+R)^N - 1], where P is the loan amount, R is the monthly rate (annual rate / 12 / 100) and N is the number of monthly EMIs. Within each month, interest = opening balance x R, principal = EMI - interest, and closing balance = opening balance - principal.

How do I calculate my monthly loan payment?

Convert the annual rate to a monthly rate, convert the tenure to months, and apply the EMI formula. For Rs 10 lakh at 9% for 5 years, R = 0.0075, N = 60 and (1.0075)^60 = 1.565681, so EMI = 10,00,000 x 0.0075 x 1.565681 / 0.565681 = Rs 20,758. As a shortcut, the EMI at 9% for 20 years is about Rs 900 per lakh borrowed.

What is the first EMI breakup of a loan?

The interest in the first EMI equals the full loan amount multiplied by the monthly rate, and the rest of the EMI is principal. On a Rs 50 lakh home loan at 8.5% for 20 years, the first EMI of Rs 43,391 is Rs 35,417 interest (81.6%) and Rs 7,974 principal. On a Rs 5 lakh personal loan at 12% for 3 years, interest is 30.1% of the first EMI.

Why is more interest paid in the early years of a loan?

Interest is charged on the outstanding balance, and the balance is highest at the start. With a fixed EMI, a bigger slice goes to interest in the early months and a smaller slice to principal. On a 20-year home loan at 8.5%, principal overtakes interest only at EMI 143, almost 12 years into the loan.

How much of my loan is repaid halfway through the tenure?

Less than half on most long loans. On a Rs 50 lakh loan at 8.5% for 20 years, half the principal is cleared only at EMI 166, about 13.8 years in. On a Rs 10 lakh loan at 9% for 5 years, the halfway point comes at EMI 34, because short loans are far less interest-heavy.

Can I use this as a home loan amortization calculator in India?

Yes. Enter the sanctioned amount, the rate on your sanction letter and the tenure in years. The yearly schedule shows interest and principal for each loan year, which helps with Section 24(b) and Section 80C planning, and the monthly view lists every EMI. For a pre-EMI phase on an under-construction home, set a moratorium under More settings and choose Pay monthly.

Does this work for personal loan and car loan amortization?

Yes. The EMI math is identical for personal, car, two-wheeler, education and business term loans repaid in equal monthly instalments. A Rs 5 lakh personal loan at 12% for 3 years has an EMI of Rs 16,607 and costs Rs 97,858 in interest. A Rs 8 lakh car loan at 9% for 5 years has the same EMI of Rs 16,607 and costs Rs 1,96,401.

How do extra payments change the amortization schedule?

Extra payments go straight to principal, so the balance falls faster, every later EMI carries less interest, and the loan closes early with the EMI unchanged. On a Rs 50 lakh loan at 8.5% for 20 years, paying Rs 5,000 extra every month closes the loan in 187 EMIs instead of 240 and saves Rs 13,89,250 in interest.

How much interest can I save by paying off a loan early?

It depends on how early you pay and how much. A Rs 5 lakh prepayment on a Rs 50 lakh, 20-year loan at 8.5% saves Rs 16,03,691 if made with EMI 12, Rs 13,19,639 with EMI 36, and Rs 5,71,382 with EMI 120. Use the One-Time Prepayment setting in this calculator to test your own timing.

After a prepayment, should I reduce EMI or tenure?

Reducing tenure saves more interest. On a Rs 50 lakh, 20-year loan at 8.5%, a Rs 5 lakh prepayment after 36 EMIs saves Rs 13,19,639 if the EMI is kept and the tenure shortened, but only Rs 4,46,858 if the tenure is kept and the EMI cut to Rs 38,750. A lower EMI makes sense mainly when monthly cash flow is tight.

Are there prepayment charges on loans in India?

Not on floating-rate loans to individuals for non-business purposes. RBI barred prepayment penalties on floating-rate term loans to individual borrowers in May 2014, and its Pre-payment Charges on Loans Directions, 2025 apply the rule to all such loans sanctioned or renewed from 1 January 2026, for part and full prepayment. Fixed-rate loans can still carry a charge under the lender's policy.

How is interest calculated during a moratorium period?

No EMI is due during a moratorium, but interest accrues on the amount disbursed. If it is added to the loan, the EMI is calculated on the higher balance: Rs 10 lakh at 10.5% with a 24-month moratorium accrues Rs 2,10,000, raising the 10-year EMI from Rs 13,493 to Rs 16,327. Paying the interest monthly (Rs 8,750 here) keeps the EMI at Rs 13,493 and saves Rs 1,30,036.

What is broken period interest?

Broken period interest is the interest for the days between loan disbursement and the start of the first full EMI cycle. It is commonly calculated as loan amount x annual rate x days / 365, so Rs 30 lakh at 8.5% for 24 days works out to Rs 16,767. Lenders usually collect it upfront or add it to the first EMI.

How do I make a loan amortization schedule in Excel?

Use =PMT(rate/12, months, -loan) for the EMI, =IPMT(rate/12, n, months, -loan) for the interest in EMI n, and =PPMT(rate/12, n, months, -loan) for the principal. For a manual sheet, use five columns: EMI number, opening balance, interest (opening balance x rate / 12), principal (EMI - interest) and closing balance, then fill down until the balance reaches zero.

What is the difference between reducing balance and flat rate?

A reducing-balance rate charges interest on the outstanding amount, which falls every month. A flat rate charges interest on the original amount for the full tenure. On Rs 5 lakh for 3 years, 10% reducing costs Rs 80,809 in interest, while 10% flat costs Rs 1,50,000, the same as a reducing rate of about 17.92%.

How do I find the outstanding balance on my loan?

The closing balance after any EMI in the schedule is your outstanding principal at that point. On a Rs 10 lakh loan at 9% for 5 years, the balance is Rs 8,34,170 after 12 EMIs, Rs 6,52,784 after 24 and Rs 4,54,383 after 36. A lender statement can differ slightly because of rounding and the actual days in each month.

What does a 5-year loan amortization schedule look like?

A 5-year schedule has 60 EMIs grouped into five years. For Rs 10 lakh at 9%, you pay Rs 2,49,100 each year. Interest falls from Rs 83,270 in year 1 to Rs 67,714, Rs 50,699, Rs 32,088 and finally Rs 11,730 in year 5, while principal rises from Rs 1,65,830 to Rs 2,37,370.

What is negative amortization?

Negative amortization happens when the payment is smaller than the interest due, so unpaid interest is added to the balance and the loan grows instead of shrinking. For floating-rate EMI personal loans, RBI requires lenders to ensure that extending the tenure after a rate rise does not cause negative amortization. A moratorium with capitalised interest raises the balance the same way, but only before EMIs begin.

Is the lender required to give me an amortization schedule?

Yes, for new loans. RBI requires banks and NBFCs to give a Key Facts Statement for all retail and MSME term loans sanctioned on or after 1 October 2024, and the KFS must include the Annual Percentage Rate and the amortisation schedule for the full tenure. Floating-rate EMI personal loans also get a quarterly statement showing principal and interest recovered, the EMI and EMIs left.

How does a floating interest rate change my amortization schedule?

When the rate resets, the lender either raises the EMI or extends the tenure, and the schedule is recalculated from the balance on that date. On a Rs 50 lakh, 20-year loan at 8.5%, a 0.5% increase after 36 EMIs raises the EMI by Rs 1,426 if the tenure stays the same, or adds about 17 EMIs if the EMI stays the same.

Is a shorter or longer loan tenure better?

A shorter tenure costs less in total and a longer one costs less each month. Rs 50 lakh at 8.5% costs Rs 24.39 lakh in interest over 10 years and Rs 54.14 lakh over 20 years, with EMIs of Rs 61,993 and Rs 43,391. Many borrowers pick a tenure with a comfortable EMI and then prepay to shorten it.

Why does my bank's schedule differ from this calculator?

Small differences usually come from rounding and day counts. Lenders often round the EMI up to the next rupee, some compute interest on the actual days in each month instead of one-twelfth of the annual rate, and broken period interest or fees may be added. The gap should be a few rupees a month. A bigger gap usually means a different rate or tenure.

Fermor is a financial platform built for India. The calculators are the distribution layer: free tools that give real answers to real financial questions. The product being built is an automated financial action system that uses the Account Aggregator framework to connect real financial accounts and close the gap between knowing what you should do with your money and actually doing it.

Loan Amortization Calculator: EMI Amortization Schedule

What Is Loan Amortization?

Loan amortization is the repayment of a loan through equal monthly instalments (EMIs). Each EMI pays that month's interest and uses the rest to reduce the principal, until the balance reaches zero on the last EMI.

The EMI stays the same from the first month to the last. What changes is the split inside it: interest is charged on the outstanding balance, so the interest share falls every month and the principal share rises.

An amortization schedule is the table that lists this split for every EMI. Each row shows the payment number, the interest portion, the principal portion and the balance left after that payment.

Every EMI-based loan in India follows this structure: home loans, car loans, personal loans, education loans, two-wheeler loans and loans against property. Only the amount, the rate and the tenure differ.

How loan amortization works, month by month

Interest for the month: outstanding balance multiplied by the monthly rate (annual rate divided by 12).
Principal repaid: the EMI minus that month's interest.
New balance: the old balance minus the principal repaid. Next month's interest is charged on this lower figure.

Because the balance only moves down, the interest in each EMI keeps shrinking. That is why the last few EMIs of any loan are almost entirely principal.

When to Use a Loan Amortization Calculator

Use a loan amortization calculator whenever a decision depends on how much interest you will pay in total, not just on the size of the EMI.

Before signing a loan: compare tenures and offers by total interest, and check the lender's schedule in the Key Facts Statement against your own.
Before a prepayment: see how much interest and how many EMIs a bonus or lump sum would actually cut.
At a floating-rate reset: rebuild the schedule at the new rate to see the higher EMI or the longer tenure.
For home loan tax planning: split each year's EMIs into interest and principal for Section 24(b) and Section 80C.
During a moratorium or pre-EMI phase: decide whether paying interest monthly is worth it before EMIs begin.
When refinancing: compare the interest left on your current loan with a new offer in the Loan Balance Transfer Calculator.

Loan Amortization Formula: How EMI Is Calculated

The EMI on an amortizing loan is calculated with the reducing-balance formula EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1].

EMI = P × R × (1 + R)^N / [(1 + R)^N − 1]
Interest in month k  = Opening balance × R
Principal in month k = EMI − Interest in month k
Closing balance      = Opening balance − Principal

EMI formula variables, with the values used in the worked example below.
Symbol	Meaning	Example
P	Loan amount (principal)	Rs 10,00,000
R	Monthly interest rate = annual rate ÷ 12 ÷ 100	9 ÷ 12 ÷ 100 = 0.0075
N	Number of monthly EMIs	5 years × 12 = 60

The formula assumes interest is charged monthly on the reducing balance, which is how Indian banks and NBFCs price EMI loans. If the rate is zero, the EMI is simply P ÷ N.

How to calculate loan payments by hand

Monthly rate: divide the annual rate by 12, then by 100. At 9%, R = 0.0075.
Number of EMIs: multiply the tenure in years by 12. Five years is 60 EMIs.
Growth factor: compute (1 + R)^N on a scientific calculator or with =POWER(1.0075, 60) in Excel.
EMI: multiply P × R × growth factor, then divide by (growth factor − 1).

Worked Example: Rs 10 Lakh Loan at 9% for 5 Years

A Rs 10 lakh loan at 9% a year for 5 years has an EMI of Rs 20,758 and a total interest cost of Rs 2,45,501.

P = Rs 10,00,000
R = 9 ÷ 12 ÷ 100 = 0.0075
N = 5 × 12 = 60
(1.0075)^60 = 1.565681
EMI = 10,00,000 × 0.0075 × 1.565681 ÷ (1.565681 − 1)
EMI = 11,742.61 ÷ 0.565681 = Rs 20,758.36

Over 60 EMIs you pay Rs 12,45,501 in total. Rs 10,00,000 of that is principal and Rs 2,45,501 is interest, about 24.6% of the amount borrowed.

The first three EMIs and the last one

EMI split for a Rs 10 lakh loan at 9% for 60 months. Rounded to the nearest rupee.
EMI No.	EMI	Interest	Principal	Balance After
1	Rs 20,758	Rs 7,500	Rs 13,258	Rs 9,86,742
2	Rs 20,758	Rs 7,401	Rs 13,358	Rs 9,73,384
3	Rs 20,758	Rs 7,300	Rs 13,458	Rs 9,59,926
60 (last)	Rs 20,758	Rs 155	Rs 20,604	Rs 0

Month 1 interest is 10,00,000 × 0.0075 = Rs 7,500. The remaining Rs 13,258 of the EMI cuts the balance to Rs 9,86,742, and month 2 interest is charged on that lower figure.

5-Year Loan Amortization Schedule (Yearly)

For the same Rs 10 lakh loan at 9%, the yearly schedule shows interest falling from Rs 83,270 in year 1 to Rs 11,730 in year 5, while the yearly outgo stays at Rs 2,49,100.

Yearly amortization schedule, Rs 10 lakh at 9% for 5 years. Rounded to the nearest rupee, so a row can differ by Re 1.
Year	Opening Balance	Principal	Interest	Total Paid	Closing Balance
Year 1	Rs 10,00,000	Rs 1,65,830	Rs 83,270	Rs 2,49,100	Rs 8,34,170
Year 2	Rs 8,34,170	Rs 1,81,386	Rs 67,714	Rs 2,49,100	Rs 6,52,784
Year 3	Rs 6,52,784	Rs 1,98,401	Rs 50,699	Rs 2,49,100	Rs 4,54,383
Year 4	Rs 4,54,383	Rs 2,17,013	Rs 32,088	Rs 2,49,100	Rs 2,37,370
Year 5	Rs 2,37,370	Rs 2,37,370	Rs 11,730	Rs 2,49,100	Rs 0
Total		Rs 10,00,000	Rs 2,45,501	Rs 12,45,501

Half the loan is repaid by EMI 34, a little past the midpoint of the tenure. On a short loan the tilt toward interest is mild. On a 20-year home loan it is far steeper, as the next section shows.

First EMI Breakup: Why Early EMIs Are Mostly Interest

The first EMI of a loan carries the highest interest share, because interest is charged on the full amount borrowed.

How high that share goes depends on the rate and, far more, on the tenure. A long loan spreads the principal thinly across many EMIs, so interest dominates the early years.

Rates are illustrative inputs, not lender quotes. Calculated with the reducing-balance EMI formula.
Loan	Amount	Rate	Tenure	EMI	Interest in 1st EMI	Principal Overtakes Interest
Home loan	Rs 50 lakh	8.5%	20 yr	Rs 43,391	Rs 35,417 (81.6%)	EMI 143
Home loan	Rs 30 lakh	8.5%	15 yr	Rs 29,542	Rs 21,250 (71.9%)	EMI 83
Loan against property	Rs 25 lakh	10%	15 yr	Rs 26,865	Rs 20,833 (77.5%)	EMI 98
Education loan	Rs 10 lakh	10.5%	10 yr	Rs 13,493	Rs 8,750 (64.8%)	EMI 42
Car loan	Rs 8 lakh	9%	5 yr	Rs 16,607	Rs 6,000 (36.1%)	From EMI 1
Personal loan	Rs 5 lakh	12%	3 yr	Rs 16,607	Rs 5,000 (30.1%)	From EMI 1
Two-wheeler loan	Rs 1 lakh	12%	2 yr	Rs 4,707	Rs 1,000 (21.2%)	From EMI 1

On the Rs 50 lakh home loan, you pay Rs 42,20,075 in interest before principal finally overtakes it at EMI 143, almost 12 years in.

This is the strongest argument for prepaying early. A rupee of principal cleared in year 2 stops attracting interest for the remaining 18 years of the loan.

How to Read an Amortization Schedule

An amortization schedule has five working columns: EMI number, opening balance, interest, principal and closing balance.

Opening balance: what you owe at the start of the month. Interest is charged on this figure.
Interest: opening balance multiplied by the monthly rate. This is the lender's income for the month.
Principal: the EMI minus the interest. Only this part reduces your debt.
Closing balance: opening balance minus principal. It becomes the next month's opening balance.
Cumulative figures: running totals of interest and principal, useful for tax and for judging a prepayment.

Two checks catch most errors. The principal column must add up to the loan amount, and interest plus principal must equal the EMI in every row, apart from rounding on the last EMI.

Lender schedules can differ from this calculator by a few rupees. Lenders often round the EMI up to the next rupee, and some compute interest on the actual days in each month.

The balance after any EMI is your outstanding principal on that date. For a running loan, the Outstanding Loan Calculator gives the balance, interest paid so far and EMIs left.

Amortization Schedule by Loan Type: Home, Personal, Car and Education

The same amortization math applies to every EMI loan, but the tenure and rate make each loan type behave very differently.

Home loan amortization

Home loans run 15 to 30 years, so the schedule stays interest-heavy for a long time. On a Rs 50 lakh loan at 8.5% for 20 years, the first year's EMIs pay Rs 4,21,182 in interest and only Rs 99,511 in principal.

Half the principal is cleared only at EMI 166, nearly 14 years in. The Home Loan Calculator covers down payment and eligibility alongside the EMI.

Personal loan amortization

Personal loans are shorter, usually 1 to 5 years, and priced higher. A Rs 5 lakh loan at 12% for 3 years costs Rs 97,858 in interest, and principal outweighs interest from the very first EMI.

Because the tenure is short, a personal loan repays evenly. The Personal Loan EMI Calculator is built for comparing offers by amount and rate.

Car and auto loan amortization

A Rs 8 lakh car loan at 9% for 5 years has an EMI of Rs 16,607 and total interest of Rs 1,96,401. Stretching it to 7 years cuts the EMI to Rs 12,871 but raises interest to Rs 2,81,186.

A car also loses value while you repay, so a longer car loan can leave the balance above the resale price for longer. The Car Loan Calculator adds on-road price and down payment.

Education loan amortization

Education loans usually start with a moratorium covering the course, so interest builds up before the first EMI. The moratorium section below shows how much that adds and how to limit it.

Term loans for business

A business term loan repaid in equal monthly instalments amortizes exactly like the loans above. Some term loans instead repay equal principal each month, so the total payment falls over time; this calculator models equal EMIs only.

Outstanding Loan Calculator

Already repaying a loan? Check the balance, interest paid so far and the EMIs left.

Open calculator

Loan Tenure vs Total Interest

A longer tenure lowers the EMI but raises total interest, often by more than borrowers expect.

Rs 10 lakh at 9% a year, reducing balance.
Tenure	EMI	Total Interest	Interest as % of Loan
1 year	Rs 87,451	Rs 49,418	4.9%
3 years	Rs 31,800	Rs 1,44,790	14.5%
5 years	Rs 20,758	Rs 2,45,501	24.6%
7 years	Rs 16,089	Rs 3,51,483	35.1%
10 years	Rs 12,668	Rs 5,20,109	52.0%

Rs 50 lakh home loan at 8.5% a year, reducing balance.
Tenure	EMI	Total Interest	Interest as % of Loan
10 years	Rs 61,993	Rs 24,39,141	48.8%
15 years	Rs 49,237	Rs 38,62,656	77.3%
20 years	Rs 43,391	Rs 54,13,879	108.3%
25 years	Rs 40,261	Rs 70,78,406	141.6%
30 years	Rs 38,446	Rs 88,40,443	176.8%

Going from 20 to 30 years on the home loan cuts the EMI by Rs 4,945 a month but adds Rs 34.27 lakh of interest.

A practical middle path is to take the longer tenure for EMI safety and prepay whenever you can. You keep the lower EMI as a cushion without paying the full cost of the longer term.

Monthly Loan Payment per Rs 1 Lakh

To estimate the monthly payment on any loan, multiply the EMI per Rs 1 lakh below by the loan amount in lakh.

EMI in rupees for every Rs 1 lakh borrowed, reducing balance.
Rate	1 yr	3 yr	5 yr	10 yr	15 yr	20 yr
8%	8,699	3,134	2,028	1,213	956	836
9%	8,745	3,180	2,076	1,267	1,014	900
10%	8,792	3,227	2,125	1,322	1,075	965
12%	8,885	3,321	2,224	1,435	1,200	1,101
14%	8,979	3,418	2,327	1,553	1,332	1,244
16%	9,073	3,516	2,432	1,675	1,469	1,391

For example, Rs 25 lakh at 9% for 20 years works out to about 25 × 900 = Rs 22,500 a month. The exact EMI is Rs 22,493; the calculator above gives the precise figure and the full schedule.

The EMI Calculator is the quicker tool when you only need the monthly payment and not the schedule.

Extra Payments and Early Loan Payoff

Every rupee paid above the EMI goes straight to principal, so extra payments shorten the loan and cut total interest without changing the EMI.

Rs 50 lakh at 8.5% for 20 years, EMI Rs 43,391, total interest without prepayment Rs 54,13,879.
Prepayment Plan	EMIs to Close	Time Saved	Interest Saved
EMI only	240	Nil	Nil
Rs 2,000 extra every month	215	25 months	Rs 6,69,292
Rs 3,616 extra every month (one extra EMI a year)	199	41 months	Rs 10,89,367
Rs 5,000 extra every month	187	53 months	Rs 13,89,250
Rs 10,000 extra every month	155	85 months	Rs 21,78,721
Rs 5 lakh once, with EMI 12	192	48 months	Rs 16,03,691
Rs 5 lakh once, with EMI 36	199	41 months	Rs 13,19,639
Rs 5 lakh once, with EMI 120	216	24 months	Rs 5,71,382

Timing matters as much as the amount. The same Rs 5 lakh saves Rs 16.04 lakh when paid with EMI 12, but only Rs 5.71 lakh when paid with EMI 120, because less interest is left to cut.

Set Extra Payment Every Month or One-Time Prepayment under More settings in the calculator above. The results show the interest saved and how many fewer EMIs you pay.

Loan Prepayment Calculator

Compare your original and prepaid schedules side by side, with monthly and lump-sum modes.

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Prepayment: Reduce EMI or Reduce Tenure?

Reducing tenure saves far more interest than reducing EMI after a prepayment, though a lower EMI frees up monthly cash flow.

Take the Rs 50 lakh, 20-year loan at 8.5%. After 36 EMIs the balance is Rs 46,74,300. A Rs 5 lakh prepayment brings it to Rs 41,74,300, and the lender asks how to apply it.

Rs 5 lakh prepaid after EMI 36 on Rs 50 lakh at 8.5% for 20 years.
Option	EMI After	Loan Ends	Total Interest	Interest Saved
No prepayment	Rs 43,391	EMI 240	Rs 54,13,879	Nil
Keep EMI, reduce tenure	Rs 43,391	EMI 199	Rs 40,94,240	Rs 13,19,639
Keep tenure, reduce EMI	Rs 38,750	EMI 240	Rs 49,67,021	Rs 4,46,858

Reducing tenure saves about three times as much here. Reducing the EMI suits a borrower whose budget is under strain; the EMI Reduction Calculator models that choice.

Prepayment charges in India

RBI has barred banks from charging foreclosure charges or prepayment penalties on floating-rate term loans to individual borrowers since May 2014.

The RBI Pre-payment Charges on Loans Directions, 2025 cover loans sanctioned or renewed from 1 January 2026. Floating-rate loans to individuals for non-business purposes carry no prepayment charge, for part or full prepayment.

Fixed-rate loans can still carry a charge under the lender's policy. Check the Key Facts Statement before prepaying a fixed-rate personal or car loan.

Moratorium, Pre-EMI and Broken Period Interest

A moratorium is a period at the start of a loan when no EMI is due, but interest still accrues on the amount disbursed.

Education loans usually carry one, covering the course and a short grace period. Home loans for under-construction property often have a pre-EMI phase, when the borrower pays interest only until possession.

The interest can be handled two ways. It can be added to the loan when EMIs begin (capitalised), or paid every month as interest-only pre-EMI.

Rs 10 lakh at 10.5%, 10-year EMI tenure after a 24-month moratorium.
Option	Paid During Moratorium	EMI Afterwards	Total Interest
No moratorium	Nil	Rs 13,493	Rs 6,19,220
Interest added to loan	Nil	Rs 16,327	Rs 9,59,256
Interest paid monthly	Rs 8,750 a month	Rs 13,493	Rs 8,29,220

Paying the interest monthly saves Rs 1,30,036 here. The Rs 2,10,000 of accrued interest never joins the balance, so it never attracts interest of its own.

This calculator applies simple interest on the disbursed amount during the moratorium. A lender that compounds monthly in this phase will show a slightly higher capitalised figure.

For course-linked loans, the Education Loan EMI Calculator sets the moratorium around the study period.

Broken period interest

Broken period interest (BPI) is the interest for the days between disbursement and the start of your first full EMI cycle. Lenders usually collect it upfront or add it to the first EMI.

It is commonly calculated as loan amount × annual rate × days ÷ 365. A Rs 30 lakh loan at 8.5% disbursed 24 days before the EMI cycle begins carries BPI of Rs 16,767.

RBI's April 2024 circular on charging of interest requires lenders to charge interest from the actual disbursement date, and only for the days the loan is outstanding.

Reducing Balance vs Flat Rate Amortization

A reducing-balance rate charges interest only on what you still owe, while a flat rate charges it on the original amount for the full tenure. The same headline rate therefore costs far more on a flat basis.

Rs 5 lakh repaid over 3 years.
Method	Rate	EMI	Total Interest
Reducing balance	10%	Rs 16,134	Rs 80,809
Flat rate	10%	Rs 18,056	Rs 1,50,000

The flat 10% loan costs the same as a reducing-balance loan at about 17.92%. Convert any flat rate before comparing offers.

Reducing-balance rate that gives the same EMI as each flat rate.
Flat Rate	Equivalent Reducing Rate (3 yr)	Equivalent Reducing Rate (5 yr)
7%	12.83%	12.50%
8%	14.55%	14.13%
9%	16.24%	15.71%
12%	21.20%	20.31%

RBI's Key Facts Statement rules require lenders to disclose the Annual Percentage Rate (APR), which includes fees. The APR to Monthly Rate Calculator converts an annual rate into the monthly rate that drives a schedule.

Loan Amortization Schedule in Excel

Excel builds an amortization schedule with five functions: PMT for the EMI, IPMT and PPMT for each month's split, and CUMIPMT and CUMPRINC for totals over a range of EMIs.

Excel results for Rs 10 lakh at 9% for 60 months. CUMIPMT and CUMPRINC return negative values because of Excel's cash-flow sign convention.
Function	Returns	Example Formula	Result
PMT	EMI	=PMT(9%/12, 60, -1000000)	20,758.36
IPMT	Interest in EMI n	=IPMT(9%/12, 1, 60, -1000000)	7,500.00
PPMT	Principal in EMI n	=PPMT(9%/12, 1, 60, -1000000)	13,258.36
CUMIPMT	Interest over a range of EMIs	=CUMIPMT(9%/12, 60, 1000000, 1, 12, 0)	-83,270.24
CUMPRINC	Principal over a range of EMIs	=CUMPRINC(9%/12, 60, 1000000, 1, 12, 0)	-1,65,830.02

Build the schedule in five columns

Column A, EMI number: 1 to N, filled down.
Column B, opening balance: the loan amount in row 1, then the previous row's closing balance.
Column C, interest: =B2*rate/12.
Column D, principal: =EMI-C2, with the EMI from PMT in a fixed cell.
Column E, closing balance: =B2-D2. Fill down; the last row should reach zero.

For a moratorium, add rows before EMI 1 where the balance grows by the monthly interest, or stays flat if interest is paid. Then run PMT on the balance at the end of the moratorium.

The monthly view of the schedule above produces the same figures, so a sheet built this way should match it to the rupee, apart from rounding.

Home Loan Amortization and Income Tax

The amortization schedule tells you how much of each year's home loan EMIs is interest and how much is principal, the two figures you claim separately for tax.

Under the old tax regime, interest on a self-occupied home is deductible up to Rs 2 lakh a year under Section 24(b). Principal counts toward the Rs 1.5 lakh Section 80C limit. The new regime allows neither for a self-occupied home.

Rs 50 lakh at 8.5% for 20 years, by loan year. The 80C limit is shared with EPF, PPF, ELSS and other eligible items.
Loan Year	Interest Paid	Principal Paid	Max 24(b) Claim	Max 80C Claim
Year 1	Rs 4,21,182	Rs 99,511	Rs 2,00,000	Rs 99,511
Year 5	Rs 3,81,053	Rs 1,39,641	Rs 2,00,000	Rs 1,39,641
Year 10	Rs 3,07,420	Rs 2,13,274	Rs 2,00,000	Rs 1,50,000
Year 15	Rs 1,94,961	Rs 3,25,733	Rs 1,94,961	Rs 1,50,000
Year 20	Rs 23,202	Rs 4,97,492	Rs 23,202	Rs 1,50,000

Interest stays above the Rs 2 lakh cap for the first 14 years of this loan. Prepaying in that window mostly cuts interest you could not have claimed anyway, which strengthens the case for early prepayment.

Tax is claimed by financial year (April to March), not loan year, so use the interest certificate your lender issues. From tax year 2026-27 the Income-tax Act, 2025 renumbers these provisions; Section 80C, for example, becomes Section 123 with the same Rs 1.5 lakh limit.

Details are on the Income Tax Department e-filing portal. Run the Income Tax Calculator with your interest and principal figures to see the actual saving.

RBI Rules That Shape Your Repayment Schedule

RBI requires lenders to show you the amortization schedule before you sign, and it regulates how that schedule can change afterwards.

Key Facts Statement: for retail and MSME term loans sanctioned on or after 1 October 2024, lenders must give a KFS with the APR and the amortisation schedule for the full tenure, under the RBI circular of 15 April 2024.
Quarterly statements: for floating-rate EMI personal loans, lenders must share a statement each quarter with principal and interest recovered, the EMI, EMIs left and the annualised rate, under the RBI circular of 18 August 2023.
Choice at a rate reset: the same circular lets borrowers choose a higher EMI, a longer tenure or both, and prepay in part or in full at any point. A longer tenure must not cause negative amortization.
Interest only from disbursement: interest can be charged only from the actual disbursement date and only for the days the loan is outstanding.
No prepayment charge on floating-rate personal-use loans: applies to individuals under the 2025 Directions for loans sanctioned or renewed from 1 January 2026.

A rate rise hits long loans hardest. On the Rs 50 lakh, 20-year loan at 8.5%, a 0.5% increase after 36 EMIs raises the EMI by Rs 1,426 if the tenure is kept, or adds about 17 EMIs if the EMI is kept.

The Floating vs Fixed Rate Calculator tests how rate changes would move your total cost.

Common Loan Amortization Mistakes to Avoid

The costliest amortization mistake is judging a loan by its EMI instead of its total interest.

Comparing EMIs, not total cost: a lower EMI from a longer tenure can cost lakhs more. Compare the total interest in the schedule.
Treating a flat rate like a reducing rate: 10% flat on a 3-year loan costs about the same as 17.92% reducing.
Prepaying late: the same prepayment saves the most in the first few years, when the balance and the interest share are highest.
Not saying how a prepayment should be applied: ask the lender in writing to reduce the tenure if cutting total interest is the goal.
Ignoring moratorium interest: capitalised interest raises both the EMI and the total cost, while paying it monthly avoids interest on interest.
Relying on an old schedule after a reset: a floating-rate schedule changes with every reset, so check the new EMI or tenure on the lender's statement.

Limitations of This Calculator

The rate is fixed for the whole tenure. Floating rates reset with the lender's benchmark, so the schedule is exact only while the rate holds.

Interest uses monthly rests at one-twelfth of the annual rate. Lenders that charge interest on actual days in each month can differ by a few rupees per EMI.

Fees and charges are excluded. Processing fees, insurance added to the loan, GST on charges and broken period interest are not part of the schedule, which is why the APR in your KFS is higher.

Only equal EMIs are modelled. Step-up, step-down, bullet and equal-principal repayment structures need a different schedule.

How to Use This Loan Amortization Calculator

Loan Amount: set the amount borrowed, from Rs 10,000 to Rs 5 crore. Click the value to type an exact figure.
Interest Rate: enter the annual rate from your sanction letter or offer, between 1% and 30%.
Loan Tenure: pick years or months, or tap a preset from 1Y to 30Y.
More settings: add an extra monthly payment, a one-time prepayment with the EMI it is paid with, or a moratorium with interest added to the loan or paid monthly.
Results: read the EMI, total interest, total payable, interest in the first EMI, number of EMIs and interest saved.
Schedule: open Loan Amortization Schedule for the bar chart, then switch between the yearly and monthly tables.

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Frequently Asked Questions

A loan amortization schedule is a table that lists every EMI of a loan with its interest portion, principal portion and the balance left after the payment. The EMI stays fixed, but the interest share falls and the principal share rises each month. For a Rs 10 lakh loan at 9% for 5 years, the first EMI of Rs 20,758 carries Rs 7,500 of interest, while the last carries only Rs 155.

Disclaimer: All calculations on this page are indicative only and based on the inputs provided. Actual EMIs and schedules can differ because of rounding, day-count conventions, broken period interest, fees, GST on charges and floating-rate resets. Interest rates in examples are illustrative, not lender quotes. Tax rules are summarised for general information. This calculator is for educational and planning purposes only and does not constitute financial, tax or legal advice. Consult your lender or a qualified CA before making borrowing or prepayment decisions.