Amortization Schedule: Calculate Personal Loan Repayment with Our Amortization Calculator

When you take a personal loan, there are some essential details you need to go over. And one such detail is the amortization schedule. This detail is crucial in understanding how you will repay the loan over time and will help you in effective debt management. But what is a loan amortization schedule for a personal loan, and how can you calculate it? Let’s take a look.

What is the Personal Loan Amortization Schedule?

When you take a personal loan, there is a specific duration during which you have to pay it back. This duration is called the repayment period or the loan tenure. And this personal loan repayment schedule is not in one go but in several small installments during the loan tenure. Also, you don’t just pay back the loan amount that you have borrowed. But along with the principal amount of the loan, you also have to pay a certain amount of interest. The amount of interest depends on the personal loan interest rate.

The principal repayment and the interest payment are made through Equated Monthly Instalments (EMIs) of a certain amount that make it easier for you to meet your loan obligations while managing other expenses and financial goals. And an amortization schedule is a loan repayment schedule that your lender will present when you apply for a personal loan.

The loan amortization schedule will show you how exactly you will be paying off the personal loan and how the loan amount you owe will reduce over time. The amortization schedule provides a breakdown of the principal you’re paying, the interest you’re paying, and the outstanding balance amount each month. This table helps you have a debt repayment plan to meet all your EMI payments on time and comfortably.

How Personal Loan Amortization Calculator Works?

An amortization calculator simplifies understanding loan repayments by breaking down fixed monthly payments. To use it, input loan amount, interest rate, and tenure. The calculator computes monthly payments considering these factors, revealing how much goes to interest and principal.

The amortization calculator uses the following formula to calculate the loan repayment structure:

A = [i x P x (1 + i)n] / [(1 + i)n -1]

Where;

A = Periodic Payment Amount P = Principal Amount i = Interest rate n = Total Number of Payments

The amortization schedule tracks the balance, principal, interest, and cumulative interest paid. It helps borrowers grasp the loan's progress, visualising costs and durations. This financial tool empowers users to make informed decisions about their loans.

How to calculate your personal loan amortization schedule?

You can calculate the amortization schedule for your personal loan using a personal loan EMI calculator available online on Kotak’s website. While it’s possible to calculate it, too, manually using the EMI calculator is easier and quicker.

All you need to do is enter the estimated personal loan interest rate, the loan amount you are borrowing, and the duration you are borrowing. Within a few seconds, the personal loan EMI calculator will provide you with an accurate estimate of not just the EMI but also the amortization table detailing how your loan will be paid off over time.

The calculator is free and easy to use. You can use it multiple times and add different values for the tenure and loan amount to arrive at an EMI amount better suited for you and your financial goals.

Personal Loan Amortization Schedule

Month	EMI Amount	Principal Payable	Interest Payable	Closing Balance
1	8,787	7,962	825	92,038
2	8,787	8,028	759	84,010
3	8,787	8,094	693	75,917
4	8,787	8,161	626	67,756
5	8,787	8,228	559	59,528
6	8,787	8,296	491	51,232
7	8,787	8,364	423	42,868
8	8,787	8,433	354	34,435
9	8,787	8,503	284	25,932
10	8,787	8,573	214	17,359
11	8,787	8,644	143	8,715
12	8,787	8,715	72	0

Benefits of Personal Loan Amortization Calculator

Accurate Repayment Planning
The calculator details your loan repayment schedule, clarifying how each monthly payment covers interest and principal. It helps with effective financial planning by displaying payment distribution over time.
Comparison Tool
By using this tool, you can compare various instant personal loan options. Assessing the impact of different interest rates, loan amounts, and terms facilitates informed decision-making, aligning with your needs and budget.
Time-Saving
Get instant and accurate results with the calculator, eliminating manual calculations. This time-saving tool ensures efficient financial planning, providing quick and reliable information.
Financial Visibility
Gain a clear view of your loan's total cost, including interest paid, using the amortization calculator. This enhanced visibility supports wise financial decisions, helping you stay on track with your repayment goals.

Wrapping up

Calculating your personal loan amortization table using the personal loan EMI calculator before you hit the personal loan apply button is crucial as it helps you understand and forecast your loan cost over time. So, make sure to calculate the table and take a good look at it before you take a personal loan.