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EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

Loan amortization schedule

Enter a loan amount, an annual rate and a tenure in months. Every instalment is split into interest and principal, with yearly totals for long tenures.

Short answer: ₹25,00,000 at 8.5% for 240 months is an EMI of about ₹21,696, with ₹27,07,000 of interest over the term — a total repayment near ₹52,07,000. Two-thirds of the cost is interest, which is what the yearly table makes visible.

Why the split matters

The EMI stays the same for twenty years, but its contents change every month. In year one most of each instalment is interest; by year twenty most of it is principal. Prepaying early therefore saves far more than prepaying late, and this table is the arithmetic behind that claim.

Worked example

₹5,00,000 at 12% for 60 months: EMI ₹11,122, interest for the first month ₹5,000 against ₹6,122 of principal. Over the term the interest totals ₹1,67,000, and the closing balance is exactly zero because the last instalment is adjusted.

Amortisation questions

What is an amortisation schedule?

A row per repayment showing how much of each instalment is interest and how much reduces the balance. Early instalments are mostly interest; late ones are mostly principal, even though the EMI amount does not change.

How is the EMI calculated?

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), with r the monthly rate (annual ÷ 12 ÷ 100) and n the number of months. At 0% the formula is undefined and the page falls back to P ÷ n, which is the honest answer for an interest-free loan.

Why does the last instalment differ by a few rupees?

The final payment is adjusted to the remaining balance, so the schedule closes at exactly zero rather than a few paise of drift. That is what a lender does too; a schedule that ends with a stray ₹0.42 is a rounding artefact, not a plan.

Does this include processing fees or insurance?

No. It models principal, interest and tenure only. Fees, GST on fees, insurance and prepayment charges sit outside the amortisation and would each shift the effective cost.

Related tools

EMI calculatorThe instalment and total interest in one screen.NPV and IRR calculatorAppraise the asset the loan buys.Compound interest calculatorThe other side of the same arithmetic.