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Amortization Calculator – Loan Schedule, EMI & Table

Amortization Calculator – Loan Schedule, EMI & Table

Q: 6. How can I use extra payments in an amortization calculator?

Many calculators, including Vedantu's, allow you to input extra payments to see how they accelerate loan repayment and reduce total interest paid. Simply enter the extra payment amount into the designated field.

Q: 8. How can I use an amortization calculator to plan my loan repayment?

Use Vedantu's amortization calculator to input your loan details. The generated schedule will show you your monthly payment, the interest and principal breakdown for each payment, and the total interest paid over the loan's life. This helps budget and plan repayments effectively.

Q: 9. What are the benefits of using an online amortization calculator?

Online calculators like Vedantu's offer convenience, speed, and accuracy in calculating amortization schedules. They eliminate manual calculations, saving time and reducing the risk of errors. They also offer clear visualization through the schedule provided.

How Does Loan Amortization Work? Formula, Steps & Example

Loan Amount (₹):
Annual Interest Rate (%):
Tenure (Years):
Payment Frequency:
Extra Payment Each Installment (Optional ₹):

What is Amortization Calculator?

An Amortization Calculator helps you figure out the regular repayment amount, interest, and principal breakdown for any fixed loan over a period. It instantly produces a clear schedule showing exactly how each payment reduces your loan.

With this tool, you can visualize monthly, quarterly, or yearly payments and see how extra payments can speed up loan completion. It's perfect for students, borrowers, or anyone learning practical finance skills.

Formula Behind Amortization Calculator

The fixed payment, or EMI, is calculated using:
EMI = [P × r × (1 + r)ⁿ] / [(1 + r)ⁿ – 1], where P is principal, r is periodic interest rate, and n is the number of payments. Each installment is split into interest (on the remaining principal) and the rest goes to principal, gradually paying down the loan to zero.

Amortization Calculation Table

Period	Payment	Interest	Principal	Balance
1	₹9,901.00	₹2,917.00	₹6,984.00	₹4,93,016.00
2	₹9,901.00	₹2,888.09	₹7,012.91	₹4,85,987.09
3	₹9,901.00	₹2,849.60	₹7,051.40	₹4,78,935.68
...	...	...	...	...
58	₹9,901.00	₹66.51	₹9,834.49	₹9,834.49
59	₹9,901.00	₹57.23	₹9,843.77	₹-9.28
60	₹9,901.00	₹0.00	₹9,901.00	₹0.00

Steps to Use Amortization Calculator

Enter your loan amount, interest rate, and tenure in years.
Select your preferred payment frequency and add any extra payment per installment.
Click "Calculate" and instantly see your EMI, total interest, and an amortization schedule snapshot.

Why Use Vedantu’s Amortization Calculator?

Vedantu’s Amortization Calculator gives you fast, accurate answers for any loan scenario, perfectly suited for mobile and desktop. It explains repayments, interest, and loan schedules step by step.

Compare scenarios or adjust extra payments and watch your schedule update in real time. This makes it ideal for competitive exam prep, real-life planning, or understanding maths concepts in depth.

Applications of Amortization Calculator

Amortization tools are essential for planning home loans, car finance, student loans, EMIs, and business borrowings. Knowing your repayment breakdown helps with budgeting accurately and avoiding surprises.

Beyond borrowing, these schedules clarify how much you truly pay for any loan. For more foundational maths, check the HCF Calculator and Prime Numbers guide, or explore Algebra topics to strengthen your problem-solving toolkit.

Developed by verified teachers on Vedantu and aligned to Indian and international standards, this tool builds maths and finance confidence you can use for exams or daily decisions. For more number skills, check Multiples in Maths or practice Factors of Numbers directly.

FAQs on Amortization Calculator – Loan Schedule, EMI & Table

1. What is an amortization schedule?

An amortization schedule is a table that details each payment of a loan, showing the breakdown of principal and interest for each period. It helps you visualize how your loan balance decreases over time. Vedantu's amortization calculator provides this schedule instantly.

2. How do I calculate an amortization schedule manually?

Calculating an amortization schedule manually requires using the amortization formula. This formula considers the loan amount (principal), interest rate, and loan term (number of payments). The formula calculates the monthly payment (EMI), and then each payment is broken down into principal and interest, adjusting the remaining balance each month. However, Vedantu's calculator simplifies this process.

3. What is the amortization formula?

The formula for calculating the monthly payment (EMI) in an amortization schedule is: EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1], where P is the principal loan amount, r is the monthly interest rate, and n is the total number of payments. Vedantu's calculator automatically applies this formula.

4. How does an amortization calculator work?

An amortization calculator uses the amortization formula to determine the monthly payment and then iteratively calculates the principal and interest portions of each payment, updating the loan balance until it reaches zero. Vedantu's user-friendly interface makes the process simple and efficient.

5. What is the difference between amortization and depreciation?

Amortization refers to the gradual repayment of a loan over time, while depreciation is the decrease in the value of an asset over its useful life. Both involve the systematic reduction of a value, but they apply to different contexts. Understanding both is crucial for financial literacy.

6. How can I use extra payments in an amortization calculator?

Many calculators, including Vedantu's, allow you to input extra payments to see how they accelerate loan repayment and reduce total interest paid. Simply enter the extra payment amount into the designated field.

7. What factors affect my monthly amortization payment?

Your monthly amortization payment is affected by three primary factors: the principal loan amount (higher amount = higher payment), the interest rate (higher rate = higher payment), and the loan term (longer term = lower payment, but more interest overall). Vedantu's calculator helps you explore the impact of each factor.

8. How can I use an amortization calculator to plan my loan repayment?

Use Vedantu's amortization calculator to input your loan details. The generated schedule will show you your monthly payment, the interest and principal breakdown for each payment, and the total interest paid over the loan's life. This helps budget and plan repayments effectively.

9. What are the benefits of using an online amortization calculator?

Online calculators like Vedantu's offer convenience, speed, and accuracy in calculating amortization schedules. They eliminate manual calculations, saving time and reducing the risk of errors. They also offer clear visualization through the schedule provided.

10. Can I use an amortization calculator for different types of loans?

Yes, amortization calculators can be applied to various loan types, including mortgages, car loans, personal loans, and student loans. However, ensure you input the correct parameters for the loan type you are calculating. Vedantu’s calculator is versatile enough for different loan types.

11. How does the interest portion of my payment change over time?

In an amortization schedule, the interest portion of your payment is highest at the beginning of the loan and gradually decreases over time. This is because the interest is calculated on the outstanding principal balance, which reduces with each payment.

12. What is a balloon payment, and how does it affect the amortization schedule?

A balloon payment is a large final payment at the end of a loan term that is larger than the regular payments. This affects the amortization schedule by resulting in smaller regular payments and a significantly larger payment due at the end.