How is an amortization schedule calculated?

The EMI is calculated using the formula EMI = P × r × (1+r)^n / ((1+r)^n – 1). Each month, the interest is calculated on the remaining balance, and the rest of the EMI goes towards repaying the principal.

What is the difference between EMI calculator and amortization calculator?

An EMI calculator gives you the monthly instalment amount and summary totals. An amortization calculator provides a detailed month-by-month schedule showing exactly how each payment is split between principal and interest, and how the outstanding balance reduces over time.

Loan Amortization Calculator — Free Amortization Schedule

Loan Details

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Monthly EMI 0

Principal Amount 0

Total Interest 0

Total Payment 0

Year-wise Amortization Schedule

Year	Opening Balance	EMI Paid	Principal Paid	Interest Paid	Closing Balance

Month-wise Amortization Schedule

Month	Opening Balance	EMI	Principal	Interest	Closing Balance

What is Loan Amortization?

Loan amortization is the process of paying off a debt through regular, fixed payments over a set period. Each payment (EMI) is divided into two parts: interest on the outstanding balance and repayment of the principal. In the early years, a larger portion of each EMI goes towards interest; as the loan matures, more goes towards the principal.

Benefits of an Amortization Schedule

Payment Transparency: See exactly how much of each payment goes to principal vs interest every single month.
Prepayment Planning: Identify the best time to make extra payments to save maximum interest.
Total Cost Awareness: Understand the true cost of borrowing over the entire loan tenure.
Balance Tracking: Know your outstanding loan balance at any point during the tenure.
Loan Comparison: Compare different loan offers by examining their full amortization schedules side by side.

EMI Calculation Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Monthly Interest = Outstanding Balance × r

Monthly Principal = EMI − Monthly Interest

New Balance = Outstanding Balance − Monthly Principal

Where:

P = Principal loan amount
r = Monthly interest rate (Annual Rate / 12 / 100)
n = Total number of monthly installments (Years × 12)

How This Calculator Works

Loan Amount: Enter the total principal you wish to borrow.
Interest Rate: Enter the annual interest rate offered by the lender.
Loan Tenure: Enter the repayment period in years (1–30 years).
Start Month: Select when the loan begins to generate calendar-based schedules.
Year-wise Schedule: View the annual breakdown of opening balance, EMI paid, principal & interest components, and closing balance.
Month-wise Schedule: Drill down into every single monthly payment for complete transparency.

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