Amortization Calculator
This amortization calculator shows the shape of your loan's repayment, not just the totals — how much of your payment goes to interest versus principal in year 1, what you'll still owe at the halfway point, and the total interest over the full term. Enter your loan amount, rate and term to see exactly how a reducing-balance loan front-loads interest and back-loads principal, which is the single most misunderstood part of how loans actually work.
The amount you're borrowing — e.g. a ₹60,00,000 home loan or a ₹6,00,000 car loan.
The reducing-balance rate on your loan.
The full repayment period — e.g. 30 years for a typical home loan tenure.
Interest paid in year 1
सेव करने के लिए लॉग इन करें₹3,88,025
How much of your first year's payments is pure interest — e.g. ₹3,88,025 of a ₹60,00,000 loan's first-year payments, at 6.5% over 30 years.
The rest of year 1's payments — this is the only part actually reducing what you owe.
What you'll still owe when you're exactly halfway through the term — usually far more than half the original loan.
Every rupee of interest across the entire loan — on a 30-year term this often exceeds the amount borrowed.
Frequently asked questions
Why is my mortgage payment mostly interest in the early years?+
Because interest is charged on the outstanding balance, which is largest right after you borrow. As you pay down principal each month, the balance shrinks and less interest accrues, so a growing share of each fixed payment goes to principal — this shift accelerates especially in the loan's final third.
What is an amortization schedule?+
A month-by-month (or year-by-year) breakdown of every payment showing how much is interest and how much is principal, and the remaining balance after each payment — this calculator gives you the key snapshots (year 1, halfway, total) rather than all 360 monthly rows.
Does a shorter loan term change the interest/principal split?+
Yes — shorter terms shift the split toward principal faster, because a higher required payment covers more than just the interest each month from the very start. That's part of why a 15-year loan tenure pays off so much faster than a 30-year one for a similar rate.
How does an extra payment affect the amortization schedule?+
An extra payment goes entirely to principal, which reduces the balance that all future interest is calculated on — effectively skipping ahead in the schedule. See our loan prepayment and mortgage overpayment calculators to model this directly.
Is amortization the same as depreciation?+
No — amortization describes paying down a loan's principal over time; depreciation describes an asset losing value over time. They're unrelated concepts that happen to sound similar and are sometimes confused in accounting contexts.
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