Loan Amortization Calculator

See exactly how a loan pays down over time, month by month, and find out how much time and interest an extra monthly payment would save you.

₹20,00,000
₹
8%
%
yrs
₹2,000
₹

Optional - see how much time and interest an extra payment saves. Set to 0 for the baseline schedule only.

Base monthly payment
₹19,113
Months to pay off (with extra)
151 months
Months saved
29 months
Interest saved
₹2,68,006

Amortization schedule (base payment, no extra)

MonthPrincipalInterestBalance
1₹5,780₹13,333₹19,94,220
2₹5,818₹13,295₹19,88,402
3₹5,857₹13,256₹19,82,545
4₹5,896₹13,217₹19,76,649
5₹5,935₹13,178₹19,70,714
6₹5,975₹13,138₹19,64,739
7₹6,015₹13,098₹19,58,724
8₹6,055₹13,058₹19,52,669
9₹6,095₹13,018₹19,46,574
10₹6,136₹12,977₹19,40,438
11₹6,177₹12,936₹19,34,261
12₹6,218₹12,895₹19,28,043

How to calculate an amortization schedule

Every payment splits between interest (on the current balance) and principal (which reduces the balance). Early in the loan, most of each payment is interest; later, most is principal - even though the payment amount stays fixed. Adding extra money on top goes straight to principal, which compounds into meaningfully shorter payoff times.

Formula
Interest this month = balance x monthly rate; Principal this month = payment - interest

Example. A 2,000,000 loan at 8% over 15 years pays about 19,113/month. An extra 2,000/month pays it off 29 months (almost 2.5 years) sooner and saves roughly 268,000 in interest.

Frequently asked questions

Why does extra payment save so much interest?

Every rupee/dollar of extra payment reduces the principal immediately, which means every future month's interest (calculated on that lower balance) is smaller too - the savings compound over the life of the loan.

Should I always make extra payments if I can?

It's usually a good move if your loan has no prepayment penalty and you don't have higher-interest debt elsewhere or an unfunded emergency fund - extra payments are most valuable on your highest-rate debt.

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