Home Loan Amortisation Calculator

A Home Loan amortisation calculator is an online tool that simplifies loan repayment planning. It breaks down your loan repayment into manageable EMIs, showing how much of each EMI goes toward principal repayment and how much is attributed to interest payments over time. Use our Home Loan amortisation calculator to stay on top of your repayment journey and take control of your loan planning.

Calculate Your Home Loan Amortisation

Check Home Loan Amortisation Calculator

Preferred loan amount

₹

₹20,00,000

₹10,00,00,000

Interest rate (per annum)

8.65%

13%

Loan tenure (months)

36 months

360 months

Estimated EMI

per month

₹ 36,690
Interest payable
₹52,41, 690

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View Amortisation Schedule

An amortisation schedule provides details like loan tenure, EMI / EPI amount, and principal & interest proportion of each instalment. However, it is an estimate and actual values may vary upon loan disbursement.

Amortisation Schedule:

The amortisation schedule shows how your EMI is applied:

In the initial months, a larger portion of the EMI goes toward interest, while a smaller fraction contributes to the principal repayment.

Over time, as the outstanding loan balance reduces, the principal portion increases, and the interest portion decreases.

Home loan Amortisation Calculator Schedule

Month	EMI (₹ )	Principal Component (₹ )	Interest Component (₹ )	Outstanding Loan (₹ )
1	₹ 25,000	₹ 5,000	₹ 20,000	₹ 50,00,000
2	₹ 25,000	₹ 5,300	₹ 19,700	₹ 49,94,700
3	₹ 25,000	₹ 5,600	₹ 19,400	₹ 49,89,100

What is a Home Loan Amortisation Calculator?

A Home Loan amortisation calculator is a tool that calculates the total EMIs (Equated Monthly Installments) for your Home Loan and breaks them down into principal and interest components for each month of the loan term.

Here’s what it helps you do:

Understand Repayment Structure

With an amortisation schedule, you can see how much of your payment goes toward the principal and how much is interest.

Plan Your Finances

Amortisation calculators show the total interest payable over the loan tenure, helping you make strategic prepayment or refinance decisions.

Track Progress

Regularly reviewing your amortisation schedule lets you know exactly how much of your loan remains outstanding, keeping you informed and in control.

Save on Interest

It helps you identify opportunities to make extra payments or reduce the tenure of your loan, thereby saving significantly on total interest.

How Do You Calculate Home Loan Amortisation?

Amortisation involves splitting your Home Loan repayments into fixed instalments that cover both principal and interest over the loan tenure. Here's how it is calculated:

The Formula:

Home loan amortisation is calculated using the formula:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Where:

P is the principal loan amount.

R is the monthly interest rate (annual interest rate divided by 12).

N is the number of monthly instalments (loan tenure in months).

Step-by-Step Calculation:

- Determine the total loan amount (principal) and the interest rate applicable.

- Compute the monthly interest rate by dividing the annual interest rate by 12.

- Use the formula or an amortisation loan calculator to identify your monthly EMI.

- Break your total payment into principal and interest components for each month.

FAQs & Support

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What is a Home Loan amortisation calculator?

A Home Loan amortisation calculator is a digital tool that breaks down your loan repayment schedule into EMIs. It shows how much of each EMI goes toward reducing the principal and how much is paid as interest.

How accurate is a Home Loan amortisation calculator?

These tools are highly accurate when accurate information (loan amount, interest rate, tenure) is entered. However, dynamic factors such as changes in interest rates for floating-rate loans should be considered.

Why is an amortisation schedule important for Home Loans?

It clarifies repayment for borrowers, allowing them to track loan progress, understand interest costs and find opportunities to prepay or refinance to save money.

What is the formula behind Home Loan amortisation calculations?

"The formula for calculating EMI is:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
where
P = principal
R = monthly interest rate
N = number of months."

Does the Home Loan amortisation schedule change with prepayments?

Yes, whenever prepayments are made, the remaining principal reduces, which adjusts the schedule by either lowering EMIs (if the tenure is fixed) or shortening the tenure.

How does an amortisation calculator help in reducing Home Loan interest?

By reviewing the schedule, borrowers can see where they stand and identify how extra payments (prepayments) can reduce the outstanding principal, thereby reducing the total interest payable.

What are the benefits of using an amortisation calculator for Home Loans?

An amortisation calculator makes repayment planning easy by detailing your EMI structure, helping with financial planning and enabling decisions like prepayments for interest savings.

How can I use a Home Loan amortisation calculator to plan my payments?

You can view your EMIs and plan for prepayments or increased instalments to reduce the interest burden by entering details like the loan amount, tenure, and interest rate.

How can a Home Loan amortisation calculator help in early loan repayment?

It allows you to see the impact of prepayments on your tenure and interest. For instance, even small additional payments can shave off years from your repayment schedule.

How does a Home Loan amortisation calculator work?

The calculator uses inputs like the loan amount, interest rate and tenure to compute your EMI and generate an amortisation table showing monthly principal and interest allocations.

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