What Is an Amortization Calculator?

An amortization calculator shows how a loan is repaid over time via equal monthly payments (EMIs). Each EMI contains two parts: interest (the cost of borrowing) and principal (the portion that reduces your outstanding balance). In the early months, interest is higher and principal is smaller; later, the principal portion grows while interest shrinks. A proper schedule helps you make informed decisions and avoid surprises.

How EMI Is Calculated (Formula)

For fixed-rate, fully amortizing loans, EMI is computed using the standard formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]

• P = Loan principal
• r = Monthly interest rate = (Annual % ÷ 12 ÷ 100)
• n = Number of monthly payments

This keeps the payment amount constant while changing the mix of principal and interest each month.

Why This Calculator Is Different

• Extra payments supported — see how even small prepayments cut the tenure and interest.
• Months/Years toggle for tenure input convenience.
• Date-aware schedule — add a start date to see real calendar months.
• Download CSV — export the schedule to Excel/Sheets.
• Mobile-first UI — fast, responsive, and accessible.

Worked Example

Assume a ₹10,00,000 loan at 9.5% p.a. for 60 months. Monthly rate r = 0.095/12. Plugging values into the formula yields an EMI near ₹21,000. The schedule will show total interest across the tenor and the remaining balance month by month. If you add an extra ₹2,000 per month, the tenor shortens dramatically and interest paid drops substantially.

Expert Tips to Save Interest

1. Increase down payment to reduce principal.
2. Shorten tenure if cash-flow allows — higher EMI but much lower total interest.
3. Make periodic prepayments (bonuses, tax refunds) toward principal.
4. Refinance to a lower rate when available; recalc using this tool.
5. Avoid missing payments — penalties and extra interest add up.

Common Pitfalls

• Comparing only EMI without checking total interest.
• Stretching to very long tenures just to “fit” the EMI.
• Ignoring fees, insurance, or taxes that affect affordability.
• Not reading prepayment clauses; some lenders cap or penalize early payments.

FAQ

Can I use this for car/home/personal loans?

Yes — any fixed-rate amortizing loan works with this calculator.

What if my loan is reducing balance but rate changes?

For floating rates, re-run the calculator when the rate changes; export both scenarios to compare.

How are extra payments applied?

Each month, extra amount directly reduces principal after the EMI, which shortens the tenor while keeping the EMI constant.

Can I download and share the schedule?

Yes, use the “Download CSV” button. You can also copy a short summary.

Conclusion

Numbers drive smart decisions. With this free Amortization Calculator, you can see every rupee of interest and every step of principal reduction in seconds. Adjust the inputs, model prepayments, and choose the loan path that matches your goals.