Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
Amortization Calculator
How much of every EMI goes to interest versus principal, and when does the balance finally start shrinking? See the full year-by-year schedule, spot the prepayment sweet spot, and test how a shorter tenure or a rate cut changes the whole trajectory.
Loan details
See the full year-by-year split of interest, principal, and outstanding balance.
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Amortization EMI
₹43,391
₹43,391 per month
Lifetime interest exceeds the principal. Consider a shorter tenure or partial prepayments.
Stress-test with a 1% rate increase and look at prepayment savings.
Loan principal
₹50L
Total interest
₹54.1L
Total payment
₹1Cr
Interest share
52.0%
Share of your total payment that goes to interest.
Outstanding balance
Year-end principal remaining on the loan.
Interest vs principal per year
Each year's EMI split into interest and principal.
Amortization
Year-by-year principal vs. interest paid down.
| Year | EMI paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹5,20,692 | ₹99,511 | ₹4,21,182 | ₹49,00,489 |
| 2 | ₹5,20,692 | ₹1,08,308 | ₹4,12,386 | ₹47,92,181 |
| 3 | ₹5,20,692 | ₹1,17,880 | ₹4,02,813 | ₹46,74,300 |
| 4 | ₹5,20,692 | ₹1,28,301 | ₹3,92,394 | ₹45,46,000 |
| 5 | ₹5,20,692 | ₹1,39,640 | ₹3,81,053 | ₹44,06,359 |
Breakdown
- Principal repaid₹50L48.0%
- Interest paid₹54.1L52.0%
Benchmarks
Rate -1%
+7.7%You
₹43.4K
Benchmark
₹40.3K
What you'd pay if rates dropped by 1%.
Rate +1%
-6.9%You
₹43.4K
Benchmark
₹46.6K
Stress test for a 1% rate hike.
Tenure +5 years
+7.8%You
₹43.4K
Benchmark
₹40.3K
Lower EMI but more interest overall.
What moves the result most
Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.
You'll pay more in interest than the loan principal
At this rate and tenure, the lifetime interest exceeds the original loan amount. A shorter tenure or partial prepayments can dramatically cut the total cost.
Interest to principal
1.08x
More than half of every EMI is interest
Early-tenure EMIs are interest-heavy. Prepayments made in the first 5-7 years deliver the highest saving.
Interest share of total payment
52.0%
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
Can your cash flow actually carry this EMI?
Knowing the EMI is step one — affordability against your budget is step two.
Monthly EMI: ₹43,391
See if prepayment beats investing
On interest-heavy loans, even small prepayments cut lifetime interest meaningfully.
Compare this with another lender
A 25 bps rate difference on a 20-year loan saves lakhs.
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At a glance
- What it does
- Shows the year-by-year amortization schedule for any loan: interest paid, principal paid, and outstanding balance for each year of the tenure.
- Early years insight
- In the first 5 years of a 20-year loan at 8.5%, over 60% of each EMI goes to interest — explaining why early prepayments save the most.
- Typical output
- On a ₹50L loan at 8.5% over 20 years: year 1 closing balance ~₹48.8L; year 10 ~₹34.5L; total interest over life ~₹54L.
- Best used for
- Visualizing how EMIs chip away at the principal, and deciding the best year(s) to prepay for maximum interest savings.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Each month: interest = outstanding balance × monthly rate; principal = EMI − interest.
- New balance = old balance − principal.
- Yearly rows aggregate the 12 months into opening balance, interest paid, principal paid, and closing balance.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Standard reducing-balance schedule; interest is compounded monthly at the declared annual rate / 12.
- No prepayments, foreclosure, or rate changes are modelled.
- The schedule shows what happens if you pay exactly the EMI every month for the full tenure.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Why does the principal portion grow over time?
In a reducing-balance loan, the interest portion falls as the balance falls. Because the EMI is constant, the principal portion automatically grows to fill the gap.
When is the best time to prepay?
Early — the earlier you prepay, the more future interest you avoid. In the first 5-7 years of a 20-year home loan, principal prepayments deliver the highest interest savings.
Can I see a monthly schedule?
This view rolls the 12 monthly entries into a yearly row for readability. Most borrowers only need the yearly view to plan prepayments — use your bank's schedule for exact monthly amounts.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Comparison pages
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Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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