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Loan Amortization Schedule Calculator – Free Online Tool

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How does a loan amortization schedule calculator work?

What is Financial Amortization Schedule Calculator?

A Financial Amortization Schedule Calculator quickly shows you how much to pay monthly to repay a loan, and breaks down each payment into principal and interest portions. It generates a full payment table by months, showing your outstanding balance over time.


Using this tool, you can visualize and plan your loan repayments smartly. It is ideal for students, parents, or anyone wanting clarity on loan repayment, EMIs, and interest costs.


Formula Behind Financial Amortization Schedule Calculator

The calculator uses the EMI formula: EMI = [P × r × (1 + r)n]/[(1 + r)n – 1], where P is the loan amount, r is monthly interest rate (annual rate/12/100), and n is number of months. Each month's interest is calculated, and extra payments (if any) are factored to reduce tenure and overall interest.


Financial Amortization Example Table

MonthPaymentPrincipalInterestBalance
1₹12,133₹5,633₹6,500₹5,94,367
2₹12,133₹5,662₹6,471₹5,88,705
3₹12,133₹5,691₹6,442₹5,83,014
12₹12,133₹6,223₹5,910₹5,27,332
24₹12,133₹6,935₹5,197₹4,42,891
36₹12,133₹7,729₹4,404₹3,29,447
120₹12,133₹12,070₹63₹0

(Illustrated for a ₹6,00,000 loan, 13% p.a., 10 years; your data may vary.)


Steps to Use Financial Amortization Schedule Calculator

  • Enter your loan amount, interest rate, and loan tenure in years.
  • Optionally add any extra monthly payment amount.
  • Click "Calculate".
  • View your EMI, total interest, repayment duration, and a month-wise amortization table instantly.

Why Use Vedantu’s Financial Amortization Schedule Calculator?

This tool ensures instant, error-free loan and EMI calculations, with step-wise and visually clear reports. You can adjust values to plan prepayments and see interest savings at a glance.


No need for complex Excel formulas or manual breakdowns—our calculator adapts to loans of any size and duration, giving you transparency for home, car, or education finance planning. See instant payoff date changes if you add extra EMIs!


Applications of Financial Amortization Schedule Calculator

Ideal for home or mortgage loan planning, comparing car loans, or analyzing loan balance for faster prepayments. It’s especially useful for visualizing exact outstanding principal and interest over time for any fixed-rate borrowing.


Students can use it for education loan EMI insights, while parents can assess total interest outgo. Financial advisors and teachers also use amortization tables to explain borrowing and saving concepts simply. Try our Percentage Calculator or Interest Calculator for deeper loan analysis. Also, refer to Profit Calculator or explore Algebra Topics for broader maths learning.


FAQs on Loan Amortization Schedule Calculator – Free Online Tool

1. How do I calculate a loan amortization schedule?

Calculating a loan amortization schedule involves determining the monthly payment and then breaking down each payment into principal and interest components. You can use a formula, a spreadsheet, or an online calculator like Vedantu's. Our calculator requires you to input the loan amount, interest rate, and loan term. It then generates a table showing the monthly payment, principal paid, interest paid, and remaining balance for each month of the loan.

2. What is the formula for calculating a loan amortization schedule?

The most common formula calculates the fixed monthly payment (EMI). This formula is: EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the number of months in the loan term. Each month's interest is calculated on the outstanding balance, and the principal payment is the difference between the EMI and the interest.

3. What does an amortization schedule show?

An amortization schedule displays a month-by-month breakdown of your loan payments. It shows how much of each payment goes toward the principal (the original loan amount) and how much goes toward interest. It also shows the remaining loan balance after each payment, illustrating how your debt decreases over time. You can easily track the progress of your loan repayment with Vedantu’s amortization calculator.

4. How can I use extra payments to reduce my loan term?

Making extra payments towards your loan principal accelerates the repayment process. This reduces the total interest you pay and shortens the loan's overall term. Our calculator allows you to input extra payments to see their impact on your schedule, showing you exactly how much quicker you can pay off your loan. Vedantu's tool helps you plan effectively using such strategies.

5. What is the difference between principal and interest in a loan payment?

The principal is the original amount you borrowed. The interest is the cost of borrowing that money—the lender's charge for providing the loan. In the early stages of a loan repayment, a larger portion of your payment goes toward interest, while the proportion allocated to principal increases over time. Our amortization schedule clarifies this distribution for each payment.

6. How does the interest rate affect my loan amortization schedule?

A higher interest rate increases your monthly payment and the total interest paid over the loan's life. Conversely, a lower interest rate reduces both your monthly payment and the overall interest cost. Vedantu's calculator allows you to experiment with different interest rates to see how they affect your repayment schedule.

7. Can I create my own amortization schedule in Excel or Google Sheets?

Yes, you can create an amortization schedule using spreadsheet software. However, it involves using formulas and careful data entry. Vedantu's online calculator provides a simpler, user-friendly alternative; it automatically calculates and presents the schedule without the need for manual calculations or spreadsheet expertise.

8. What are the real-world applications of an amortization schedule?

Amortization schedules are useful for various types of loans including home loans, car loans, student loans, and personal loans. They help you understand your repayment plan, predict your future payments, and assess the impact of extra payments. Using tools like Vedantu's helps in accurate financial planning and improved decision-making.

9. What is a balloon payment in a loan amortization schedule?

A balloon payment is a large, final payment due at the end of a loan term that is significantly larger than the regular monthly payments. Many loan amortization schedules do not include a balloon payment. Our calculator focuses on standard amortization schedules with consistent monthly payments, providing clarity and ease of planning.

10. How can I compare different loan options using an amortization schedule?

An amortization schedule allows for easy comparison of loans with different interest rates, terms, and principal amounts. By inputting the details of each loan option into Vedantu's calculator, you can quickly generate the schedules side-by-side, enabling informed choices based on monthly payments, total interest paid, and loan duration.

11. What is the reducing balance method of loan repayment?

The reducing balance method, also known as the declining balance method, is the most common method for repaying loans. Each month's interest is calculated on the remaining outstanding principal balance, which decreases with each payment. This method is the basis of the amortization schedules generated by Vedantu's calculator.