How to use this calculator
You need three numbers, all printed on your sanction letter or the Key Facts Statement (KFS):
- Loan amount: the amount sanctioned and disbursed. If your loan is already running, use the outstanding principal from your latest statement instead.
- Interest rate: the current annual rate. On a floating-rate loan this is the rate after the last reset, which may differ from the sanction letter.
- Tenure: the number of months left. A loan taken over 20 years with 3 years paid has 204 months left.
Switch between the yearly and monthly views. The yearly view is easier for tax planning; the monthly view is what you compare line by line against the bank's statement.
How to read your amortization schedule
Each row shows one month (or one year) of your loan:
- Interest is the outstanding balance × annual rate ÷ 12.
- Principal is your EMI minus that interest.
- Balance is what you still owe after the payment.
The chart shows the shift over time: the amber interest part dominates the early years, and the blue principal part takes over later. That is why prepaying early saves the most.
A bank's printed schedule has the same columns under different names: opening principal, instalment, interest component, principal component and closing principal. A separate pre-EMI or broken-period line before the first full EMI is interest only and does not reduce your balance.
Worked example
A ₹30 lakh home loan at 8.5% for 20 years:
| EMI | ₹26,035 |
| Interest in the first EMI | ₹21,250 |
| Interest paid in year 1 | ₹2,52,709 |
| Principal repaid in year 1 | ₹59,711 |
| Interest paid in year 20 | ₹13,906 |
| Principal repaid in year 20 | ₹2,98,324 |
| Total interest over 20 years | ₹32,48,210 |
In the very first EMI, interest takes 81.6% of the payment. The principal part only overtakes interest in month 143, which is more than halfway through the loan. The balance falls below ₹15 lakh, half the loan, after 13 yrs 10 mos.
After ten years of EMIs you will have paid ₹22,23,958 in interest but repaid only ₹9,00,242 of principal. That is normal for a 20-year loan, and it is why an early prepayment cuts so much interest.
Is interest front-loaded? The myth and the reality
A common belief is that banks deliberately "load" interest at the start of a loan. They do not. On a reducing-balance loan you pay interest only on what you still owe, each month. Early interest is high because the balance is high, not because of any special rule.
What really drives your interest bill is the tenure. The same ₹30 lakh at 8.5% over 15 years needs an EMI of ₹29,542 and costs ₹23,17,628 in total interest. Its first-year principal repayment is ₹1,03,474. A shorter loan repays principal faster from day one, so less interest builds up on it.
The real catch is a flat-rate loan, where interest is charged on the original amount for the whole tenure. If your schedule shows the same interest every month, its true rate is far above the quoted one.
The tax split: principal and interest are claimed separately
For a home loan on a self-occupied house under the old tax regime, interest is deductible under Section 24(b) up to ₹2 lakh a year, and principal counts towards the ₹1.5 lakh Section 80C limit, which you share with PF, ELSS, life insurance and children's tuition fees. The new regime does not allow either deduction for a self-occupied house.
For the example loan in year 1:
| Interest you can claim under 24(b) | ₹2,00,000 |
| Interest above the ₹2 lakh cap (no deduction) | ₹52,709 |
| Principal that counts towards 80C | ₹59,711 |
Interest first drops under the ₹2 lakh cap in loan year 9. If the house is jointly owned and both owners repay as co-borrowers, each can claim up to the cap. Model the exact figures with the home loan tax benefit calculator, and read old vs new regime for home loans before you choose a regime.
Common mistakes when reading a schedule
- Using the sanction-day schedule after a rate change. On a floating-rate loan every reset changes the split. Ask for a fresh schedule after each change.
- Confusing the loan year with the financial year. If your EMIs started in October, loan year 1 straddles two tax years. Rely on the lender's interest certificate for filing.
- Assuming a prepayment shows up as a lower EMI. Most lenders keep the EMI and cut the tenure. Check the closing balance and the number of EMIs left, not just the EMI. To try lump sums, use the part-payment calculator.
Assumptions
- Fixed interest rate for the whole tenure, monthly reducing balance.
- EMI rounded to the nearest rupee; the final EMI is adjusted so the balance ends at ₹0.
- No broken-period interest between disbursal and the first EMI.
- Tax figures assume the old regime, a self-occupied house and loan years, not financial years.
Frequently asked questions
What is a loan amortization schedule?
It is a table showing every EMI over the life of your loan, split into the interest part and the principal part, and the balance left after each payment. Banks call it a repayment schedule; ask for a fresh copy whenever your rate or EMI changes.
Why does most of my early EMI go to interest?
Interest each month is charged on the outstanding balance. At the start the balance is highest, so interest takes the largest share of the EMI. As the balance falls, the interest part shrinks and the principal part grows. Nothing is added or loaded on; it is simply the arithmetic of a fixed EMI on a falling balance.
How is the EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. The EMI stays fixed; only its split between interest and principal changes each month.
Can I download the schedule?
Yes. Use the Download CSV button above the table. It opens in Excel, Google Sheets or any spreadsheet app. Keep it beside your bank statement to spot a missed prepayment credit.
Why does my bank's schedule not match this one exactly?
Small gaps usually come from broken-period interest for the days between disbursal and the first EMI, interest calculated on actual days in the month, or a floating rate that has been reset. If the gap is more than a few hundred rupees in a month, ask the branch which of these applies.
Which column do I use for my income tax claim?
Use the interest certificate your lender issues for the financial year, April to March, not the loan year. Interest goes under Section 24(b) and principal under Section 80C in the old tax regime. The schedule here helps you estimate those amounts in advance.