Loan EMI & Prepayment Amortization Calculator
Calculate exact monthly loan EMIs, interest breakdowns, and simulate interest savings from monthly or annual prepayments with downloadable amortization schedules.
Loan EMI & Prepayment Amortization Calculator
Calculate exact monthly EMIs, total interest, and test how annual or monthly prepayments can save you lakhs in interest and cut loan tenure.
1. Loan Parameters
2. Prepayment & Early Payoff Simulator
See how paying extra principal cuts years off your loan and saves lakhs in interest.
Payable monthly for 240 installments
Interactive Loan Amortization Schedule
Yearly breakdown of Principal repaid, Interest paid, Prepayments, and Remaining balance. Click any year to view months.
| Year | Opening Balance | Total Payment | Principal Paid | Interest Paid | Closing Balance | Loan Paid % |
|---|---|---|---|---|---|---|
| Year 1 | ₹50,00,000 | ₹5,20,692 | ₹99,510 | ₹4,21,182 | ₹49,00,491 | 2% |
| Year 2 | ₹49,00,491 | ₹5,20,692 | ₹1,08,306 | ₹4,12,386 | ₹47,92,185 | 4% |
| Year 3 | ₹47,92,185 | ₹5,20,692 | ₹1,17,879 | ₹4,02,813 | ₹46,74,307 | 7% |
| Year 4 | ₹46,74,307 | ₹5,20,692 | ₹1,28,297 | ₹3,92,395 | ₹45,46,009 | 9% |
| Year 5 | ₹45,46,009 | ₹5,20,692 | ₹1,39,638 | ₹3,81,054 | ₹44,06,371 | 12% |
| Year 6 | ₹44,06,371 | ₹5,20,692 | ₹1,51,981 | ₹3,68,711 | ₹42,54,390 | 15% |
| Year 7 | ₹42,54,390 | ₹5,20,692 | ₹1,65,414 | ₹3,55,278 | ₹40,88,976 | 18% |
| Year 8 | ₹40,88,976 | ₹5,20,692 | ₹1,80,038 | ₹3,40,654 | ₹39,08,940 | 22% |
| Year 9 | ₹39,08,940 | ₹5,20,692 | ₹1,95,950 | ₹3,24,742 | ₹37,12,991 | 26% |
| Year 10 | ₹37,12,991 | ₹5,20,692 | ₹2,13,270 | ₹3,07,422 | ₹34,99,722 | 30% |
| Year 11 | ₹34,99,722 | ₹5,20,692 | ₹2,32,120 | ₹2,88,572 | ₹32,67,601 | 35% |
| Year 12 | ₹32,67,601 | ₹5,20,692 | ₹2,52,637 | ₹2,68,055 | ₹30,14,963 | 40% |
| Year 13 | ₹30,14,963 | ₹5,20,692 | ₹2,74,969 | ₹2,45,723 | ₹27,39,995 | 45% |
| Year 14 | ₹27,39,995 | ₹5,20,692 | ₹2,99,274 | ₹2,21,418 | ₹24,40,721 | 51% |
| Year 15 | ₹24,40,721 | ₹5,20,692 | ₹3,25,728 | ₹1,94,964 | ₹21,14,995 | 58% |
| Year 16 | ₹21,14,995 | ₹5,20,692 | ₹3,54,518 | ₹1,66,174 | ₹17,60,477 | 65% |
| Year 17 | ₹17,60,477 | ₹5,20,692 | ₹3,85,854 | ₹1,34,838 | ₹13,74,624 | 73% |
| Year 18 | ₹13,74,624 | ₹5,20,692 | ₹4,19,959 | ₹1,00,733 | ₹9,54,664 | 81% |
| Year 19 | ₹9,54,664 | ₹5,20,692 | ₹4,57,082 | ₹63,610 | ₹4,97,583 | 90% |
| Year 20 | ₹4,97,583 | ₹5,20,692 | ₹4,97,482 | ₹23,210 | ₹101 | 100% |
| Year 21 | ₹101 | ₹102 | ₹101 | ₹1 | ₹0 | 100% |
Loan Calculation & Financial Planning Notice
EMI calculations utilize the standard mathematical reducing balance method: EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]. Actual loan terms, processing fees, GST on processing charges, and interest compounding schedules may vary based on your lending institution's policies.
Comprehensive Technical Guide & Reference
Input your loan amount, annual interest rate, and tenure to calculate your monthly EMI, and use the prepayment simulator to discover how much money and time you can save.
11. Step-by-Step: How to Use This Calculator
Follow these steps to compute monthly installments and model loan prepayment savings:
- •Enter Loan Principal: Input the total borrowed amount for your Home, Car, Education, or Personal Loan.
- •Input Annual Interest Rate: Enter the annual percentage interest rate (floating or fixed) offered by your bank.
- •Set Loan Tenure: Specify loan duration in years or total months.
- •Model Prepayments: Add an extra monthly contribution or periodic annual lump-sum prepayment to see how many years and lakhs of interest you will save.
- •Review Amortization Table: Inspect year-by-year and month-by-month principal vs. interest payment proportions.
22. Technical Explanation & Reducing Balance Mathematics
Most bank loans globally use the monthly reducing balance method, where monthly interest is computed strictly on the remaining unpaid principal:
- •P = Principal loan amount borrowed.
- •r = Monthly interest rate (Annual interest rate / 12 / 100).
- •n = Total number of monthly repayment installments.
- •Amortization Shift: During early repayment years, the vast majority of your EMI goes toward paying interest. Over time, as principal reduces, a larger proportion of each EMI pays down principal.
33. Prepayment Impact & Interest Optimization
On long-term loans (such as a 20-year or 30-year Home Loan), total interest paid can easily exceed 80% to 100% of the original principal. Making small, early prepayments dramatically cuts interest costs because 100% of prepayments directly reduce principal balance.
- •One Extra EMI Strategy: Paying the equivalent of just 1 extra EMI per year on a 20-year home loan can reduce loan tenure by over 4 years and save substantial interest.
- •5% Annual Step-Up: Increasing your monthly EMI payment by 5% every year with your salary increment can cut a 20-year loan tenure down to under 12 years.
Frequently Asked Questions
An amortization schedule is a complete breakdown table of every periodic payment over the life of a loan, showing the exact portion applied toward interest, the portion applied toward principal reduction, and the remaining loan balance after each installment.
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