Amortization Schedule Calculator

An amortization schedule is a table detailing each periodic payment on a loan over time. Each row shows the payment date, EMI amount, how much goes toward principal, how much goes toward interest, and the remaining balance after each payment.

Lenders calculate interest on the outstanding principal balance. In the early years, the principal is at its highest, so the interest portion is largest. As you repay principal over time, the interest component gradually decreases. This is called front-loading.

When you make a prepayment, the outstanding principal drops immediately. This reduces the interest calculated for all subsequent payments. Many schedules allow you to input extra payments to see the updated timeline and interest savings.

Yes. The amortization formula works identically for home loans, auto loans, personal loans, and education loans. Simply input the correct principal, rate, and tenure for your specific loan type.

In straight-line amortization, the principal portion of each payment is equal throughout the loan term, so payments start high and decrease over time as interest declines. In reducing balance amortization, which is the standard used by Indian banks, the total payment EMI remains constant while the principal and interest portions shift over time. This calculator uses the reducing balance method, which is easier to budget for since payments stay the same.

Under Section 24 of the Income Tax Act, you can claim a deduction of up to 2 lakh on home loan interest payments each year. An amortization schedule shows you the exact interest paid each financial year, helping you accurately claim your tax deduction. You can also see how prepayment changes future interest amounts, allowing you to plan tax-efficient prepayment strategies that maximize your deductions.

An amortization schedule is a row-by-row breakdown of every EMI payment over the loan term. Each row shows the payment number, the EMI amount, the principal portion, the interest portion, and the remaining outstanding balance. In the first few years, you will notice the interest portion is much larger than the principal portion. As you scroll down, the proportions gradually reverse. To read it effectively, focus on the cumulative interest column to see how much total interest you have paid up to any point, and the outstanding balance column to track your equity buildup.

The crossover point where principal repayment exceeds interest happens roughly two-thirds into the loan term. For a 20-year loan, this typically occurs around year 14-15. Before this point, more of your EMI goes toward interest than principal. For a 30-year loan, the crossover point is around year 22-23. Making prepayments before the crossover point has a much larger impact on total interest savings because every rupee prepaid avoids interest at the highest rate period. After the crossover, the benefit of prepayment diminishes significantly.

After a partial prepayment, the amortization schedule is recalculated based on the reduced principal. If you choose to reduce the tenure, the schedule shortens with the same EMI but fewer remaining payments. If you choose to reduce the EMI, the schedule stays the same length but with lower monthly payments. In both cases, the interest portion of future payments decreases because the outstanding principal is lower. Most online amortization calculators allow you to input prepayments and see the revised schedule instantly.

Yes, all Indian banks are required to provide loan account statements that function as amortization schedules. You can request it from your bank branch, download it from net banking, or check your loan account app. Public sector banks like SBI and private lenders like HDFC and ICICI all provide detailed statements showing the principal and interest breakup of each EMI paid. Many banks also show a year-wise projection of interest for tax planning purposes. There is usually no charge for accessing this information.

Extra payments directly reduce the outstanding principal, which means less interest accrues for all future periods. On the amortization schedule, an extra payment causes the remaining balance to drop immediately, and every subsequent row shows a smaller interest portion and larger principal portion than the original schedule. For example, one extra payment of 50,000 in year 3 of a 30-lakh loan at 8.5% could eliminate 10-12 payments from the end of the schedule and save approximately 2-2.5 lakh in total interest.