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Year-by-year amortisation +
| Year | Opening principal | EMIs paid | Principal paid | Interest paid | Closing principal |
|---|
How this is calculated +
The EMI is computed using the standard amortisation formula based on simple monthly compounding:
EMI = P × r × (1+r)n / ((1+r)n − 1)
Where:
P = Loan amount (principal)
r = Monthly interest rate = (Annual rate / 12) / 100
n = Loan tenure in months
Each EMI splits into a principal portion and an interest portion. The interest portion is highest in the first month (charged on the full outstanding) and reduces every month as the principal shrinks. By the last month, almost the entire EMI is principal.
The amortisation table above shows the running balance year-by-year. Note that this calculator assumes a fixed interest rate for the full tenure. Real-world floating-rate loans (most home loans linked to repo rate) will have varying EMIs as rates reset.
Indicative only. Banks and NBFCs apply processing fees, insurance, and other charges that change the actual cost of the loan. Interest rates may also be floating (linked to RBI’s repo rate or MCLR). For a precise loan structure for your situation, talk to us.