What is an Amortisation Calculator?

An Amortisation Calculator is an online calculator that can ultimately give you a very good idea of how your loan repayments will evolve. It will provide you with an amortisation schedule for your loan if you provide the loan amount, interest rate, repayment period, and payment frequency.

This schedule will also show you exactly how much of each monthly installment is applied to interest and how much is applied against the principal balance. So, whether you are considering getting a home loan (or mortgage), a car loan or personal loan, an Amortisation Calculator can be beneficial as it is a useful tool for planning debt management, loan comparisons, and understanding your financial obligations going forward.

Common Searches of Amortisation Calculators:

• Monthly Payment Calculator - A quick estimate or a quick way to assess your EMI.
• Loan Amortisation Schedule Generator - If you want to see the detailed tables showing repayment.
• Loan Repayment Calculator - To determine the total cost of borrowing.

Key Benefits of Using an Amortisation Calculator:

• Instant EMI Calculation - You will know your monthly loan repayment instantly without any hassles.
• Very Detailed Amortisation Table - You can clearly see how your payments divide into principal and interest, and how that can change over time.
• Visual Graphs / Charts - You can visually see how long it is going to take you to pay your loan.
• Loan Comparison Tool - You can easily fiddle with different terms and rates side by side.
• General All-purpose use - You can use it for home loans, auto loans, student loans, and personal loans.
• Totally Free to Use - No registrations / downloads required.

How to Use the Loan Amortisation Calculator:

Using the Loan Amortization Calculator is very simple and only requires the following steps:

1. Enter the Loan Amount - this will be the total amount you borrowed from the lending institution.
2. Enter the Interest Rate (%) - this is the rate the lending institution applies to your loan (on an annual basis).
3. Enter the Loan Length - how long will you have the loan (in months or years)?
4. Enter the Payment Frequency - payment will be monthly, quarterly or annual?
5. Click Calculate.

In just a few seconds, you will have output for the following items:

• Monthly Payment (EMI)
• Total Interest Paid
• Amortization Schedule (table format)
• Payoff Graph with Split of Principal vs. Interest

Why This Amortisation Tool is Useful:

• For Planning your Financials – you will see exactly how much debt you will be able to repay over time.
• Comparing Loan Offers – you can change your loan options and see which one is best for you.
• Understanding Interest – you will see how much of your payment goes to reducing the loan balance vs. your cost of interest.
• Calculate Fixed-Rate EMI - great for loans at fixed interest rates.
• Shows you in Graphs - seeing this data in a graph or chart will help you grasp your repayment journey.

Example Use Case – Loan Repayment Breakdown:

Suppose you borrow $20,000 at 6% annual interest for a loan term of 5 years (60 months).

• Monthly Payment (EMI): $386.66
• Total Interest Paid: $3,199.62
• Total Repayment: $23,199.62

In the first year, a higher portion of your EMI goes toward interest. As time progresses, more of your payment applies to the principal, reducing your debt faster. This repayment shift is clearly shown in the amortisation schedule, helping you understand the long-term cost of borrowing.