About amortization calculator
An amortisation schedule lists every payment on a loan and shows how much goes to interest and how much to principal.
Reading the table
- Interest each month = outstanding balance × monthly rate.
- Principal = EMI − interest.
- New balance = old balance − principal.
What it teaches
In the early months the interest share is large and the balance falls slowly. Extra payments early on shorten the loan the most.
A worked example
A ₹10 lakh loan at 9 percent for 5 years has an EMI of ₹20,758. In month 1 the interest is ₹7,500 and the principal repaid is ₹13,258. In month 2 the interest is ₹7,401 and the principal ₹13,358, so the principal share creeps up each month.
Using the schedule
Check the outstanding balance on any date, see how much interest you have paid so far, and decide when a prepayment will help the most. Most banks provide a statement that should match this table closely.
