Amortization calculator

What an amortization schedule shows

Every EMI you pay is split in two: interest on what you still owe, and principal, which brings the loan down. Early on, most of the EMI is interest; as the balance falls, more of each EMI goes to the principal. An amortization schedule lays this out month by month and year by year, so you can see how much you still owe at any point and how much interest you'll pay in all.

The tool groups the schedule by financial year (April–March), the same years as the interest certificate your bank gives for income-tax papers, or by calendar year.

Shankaran's home loan in Kallakurichi

Shankaran runs a hardware shop in Kallakurichi. In October 2026 he takes a ₹30 lakh home loan at 8.5% for 20 years. His EMI is ₹26,035, and over 20 years he would pay about ₹32.5 lakh in interest: more than the loan itself.

In the first year, about 81% of what he pays goes to interest. So he adds ₹5,000 a month to every EMI:

Small, regular prepayments early in the loan save the most, because they cut the balance that all future interest is worked out on.

Cut the term or cut the EMI?

When you prepay, the bank can either keep your EMI and shorten the loan, or keep the end date and lower the EMI. Cutting the term saves far more interest. Cutting the EMI gives you breathing room each month. Tell the bank which you want when you prepay.

When rates change

Most home loans in India are floating: the rate follows the RBI repo rate (5.50% since 7 October 2026) plus the bank's spread. When the rate goes up, banks usually keep your EMI the same and quietly add months to the loan; when it comes down, the term shrinks. Only when the EMI no longer covers the interest does the bank raise the EMI. Turn on Rate change to see what a move does to your end date, and ask your bank for a fresh schedule after every change.

How to use this tool

1. Type the loan amount, the rate from your Key Facts Statement, and the term.
2. Set the loan start date; the first EMI is a month later.
3. Choose financial or calendar years for the table.
4. Turn on Prepayments, Rate change, Step-up EMI, Processing fee or Balance at a year as needed.

Prepayment rules in India

Under RBI's 2025 directions, banks and other lenders cannot charge a prepayment or foreclosure fee on floating-rate loans to individuals for non-business purposes (home, education, personal) sanctioned or renewed from 1 January 2026. For older or fixed-rate loans, check your loan agreement.

For a home loan under the old tax regime, interest on a self-occupied home and the principal you repay can lower your tax within set limits (formerly sections 24(b) and 80C); the new regime does not give these. Your bank's yearly interest certificate shows the figures.

Common mistakes

• Prepaying with your emergency fund. Keep a few months of expenses aside first.
• Choosing a lower EMI by default. Ask for a shorter term unless you need the monthly room.
• Ignoring rate changes. When rates rise, banks often lengthen the term quietly; check your schedule.
• Prepaying a cheap loan before a costly one. Clear high-interest debt (cards, personal loans) first.

These figures are estimates checked in October 2026. This tool is a guide, not financial advice.