Amortization
Loan Amortization Calculator
Work out EMI, then read the schedule: interest, principal and remaining balance month by month.
How the schedule is built
Each month, interest is rate ÷ 12 times the opening balance. The rest of the EMI reduces principal. The last instalment is adjusted so the loan ends at zero.
EMI formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the loan amount, r is the monthly interest rate, and n is the number of monthly installments. If the interest rate is zero, EMI is simply P ÷ n.
Frequently asked questions
Is amortization the same as EMI?
EMI is the monthly instalment. The amortization table shows how each EMI splits between interest and principal, and how the balance falls.
Why does early interest look so large?
Interest is charged on the outstanding principal. Early balances are highest, so early EMIs are mostly interest.
Related calculators
- EMI CalculatorFind monthly EMI, total interest and the full amortisation schedule for a loan.
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- Loan Prepayment CalculatorSee how a lump-sum prepayment or extra EMI can reduce interest or shorten the loan.
- Personal Loan CalculatorEstimate personal loan EMI and total interest for an unsecured reducing-balance loan.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.