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Loan Amortization Generator

Generate a complete month-by-month breakdown of principal and interest payments for any loan.

Loan Details

This calculator uses the standard reducing balance method used by most Indian banks for Business Loans, Home Loans, and Car Loans.

Monthly EMI

₹ 20,517

Total Interest

₹ 2,31,020

Total Payment

₹ 12,31,020

Month Beginning Balance Interest Paid Principal Paid Ending Balance

Understanding Loan Amortization

Amortization refers to the process of paying off a debt over time through regular scheduled payments. A loan amortization schedule is a complete table of periodic loan payments, showing exactly how much of each payment goes toward the principal sum and how much goes toward interest.

In the early years of a typical loan (like a home or business loan), a large portion of your monthly EMI goes towards paying the interest. As the principal drops over time, an increasingly larger portion of your EMI goes towards paying down the actual principal balance.

Reducing Balance Method

Most banks compute interest on a "reducing balance" basis. This means the interest is calculated every month only on the remaining outstanding principal amount, not the original loan amount.

Frequently Asked Questions

Amortization is the process of spreading a loan into fixed payments over time. Each EMI consists of principal repayment and interest. In the early years, interest forms the larger portion. Over time, the principal portion increases as the outstanding balance decreases.
An amortization schedule shows the month-by-month breakup of each EMI into principal and interest components, the outstanding balance after each payment, and total interest paid. It helps you plan prepayments and understand the true cost of borrowing.
Interest is charged on the outstanding principal. In the beginning, the outstanding balance is highest, so interest is maximum. As you pay EMIs, the principal reduces, so subsequent interest charges decrease and more of the EMI goes toward principal.
Yes, banks provide loan amortization schedules upon request. You can also download it from your bank's internet banking portal. Our calculator generates the same schedule instantly without needing to contact the bank.
Negative amortization occurs when EMI payments are insufficient to cover the interest charge, causing the unpaid interest to be added to the principal. This increases the total loan amount over time and is seen in some adjustable-rate mortgages.