How to understand an Amortization schedule?

Updated on March 7, 20192 mins read

Updated : January 2018 Several of our customers have faced problems understanding their amortization schedules. Some realize this while explaining their home loan plan to us. But it is actually very easy. So here is a little help in understanding your home loan repayment schedule better. Given below is an amortization schedule;

article 6-table

Let us begin with understanding each component of this schedule:

1. Installment number:

This column simply indicates the serial number of each EMI with the details of each payment given in the respective rows.

2. Due date:

This column indicates the date on which each loan payment is due. Generally EMI payments occur once a month, on the same day of each month, making it easier for borrowers to remember the payment dates.

 3. Opening principle:

This column indicates the principal amount at the beginning of every month on which you are being charged the interest.

4. Installment amount:

Also known as EMI, this column indicates the monthly installment you are liable to pay to the bank as repayment. This amount changes with change in interest rate over a period of time.

5. Principle component of installment:

This column indicates that component of your EMI that has been spent on repayment of principal amount.

 6. Interest component of installment:

This column indicates that component of your EMI that has been spent on paying off the interest levied on your opening principal amount. Initially, each payment you make pays off more of the interest component than the principal amount but as time goes by, the reverse becomes applicable.

7. Closing Principle:

This column indicates the remainder of principal after each month’s installment has been paid. The closing principal amount of each month will be equal to the opening principal amount of the next month.

8. Rate of interest p.a.:

This column indicates the rate of interest per annum (year) and may keep varying at the discretion of your bank. This rate determines the EMI that you are required to pay every month. In the table given above, we observe an increase in the rate of interest, this means that each EMI you pay will pay off more of the interest component than the Principal amount. A home loan is a very long term commitment. It is important to understand what impact interest rates have on your cash flow. If you have an existing home loan or if you are planning to take a home loan, click on the link below and calculate your savings now.  


Tarini

Tarini

Tarini comes with a degree in Mass Communication and Media studies. She joined SwitchME as a content writer and moved on to being an assistant product manager. Tarini is an experienced Content Strategist with a background in Product development and management. She is skilled in SEO, social media strategy and online content marketing and likes to travel when possible
60 COMMENTS

Have a question? Post it here and we will get back to you within 1 working day.

  1. Sudheer Solomon
    Sep 26 2018 at 1:45 pm
    Reply

    Hello There…My loan is 15 lakhs and 10yrs with SBI.

    I’m paying 19,451 per month as EMI with 8.8% rate towards my home loan, but when i check online sbi EMI calculator it shows EMI as 19451 with 9.55 interest rate.
    Just confused, like why 9.55% interest instead of 8.8% with same amount.

    The extra amount will be adjusted for tenure?

    Also, Can you please mail me the amortization schedule excel at solomons27@gmail.com

    Thanks,
    Solomon

    • Suma Ganesh
      Suma Ganesh
      Sep 28 2018 at 1:42 pm

      Hi Solomon,
      In a regular amortization schedule, if you key in Rs.15 Lakhs loan with tenure 120 months, the EMI comes to Rs.19,450.72 only at the interest rate of 9.55% per annum. At 8.80% EMI should come up to Rs.18,839.39.
      Are you sure your interest rate is 8.8%?
      Perhaps your interest rate has reduced and EMI has been kept constant? If this is the case, you are repaying your home loan faster than before. This is a good scenario. I would recommend discussing this with your bank for further clarity.

  2. Ashish Sisodia
    May 11 2016 at 9:30 am
    Reply

    Hello Tarini, Can you please mail me the amortization schedule excel at sisodia06@gmail.com

    • Tarini
      Tarini
      Jun 16 2016 at 4:18 pm

      Hey Ashish
      Please find the same as an attachment in the mail id provided by you 🙂

  3. Naresh Vandre
    Jan 25 2016 at 8:26 pm
    Reply

    Hi Tarini,
    Could you pls email me the latest Amortization schedule excel to my personal mail Id: NareshVandre@Gmail.Com

    Thanking you in advance.

    • Tarini
      Tarini
      Jan 27 2016 at 4:38 pm

      Hey Naresh

      I am not sure what are you referring to here as an ‘updated Amortization schedule’. The format of amortization schedules is universal across all lenders, you can simply download the one from here and input your data into it, to get an approximate idea of what your amortization schedule will look like:)

    • Girish
      Feb 17 2016 at 2:31 pm

      I have took SBI Max gain housing loan of Approx 30Lac for 240 Months, but actually as per Amortisation schedule shows only for 226 Months, when I approached local branch, I could not get satisfactory answer. Do any one know why there is difference in actual schedule i.e 240 months vs 226 months. Does it means that they will take 14 EMI extra. If yes why?

    • Tarini
      Tarini
      Feb 19 2016 at 6:02 pm

      Hey Girish

      The bank will be able to guide you best in this regard, please get in touch with them. I will not be able to help you out here. Do feel free to post any further queries, we’d be happy to assist 🙂

    • Premkumar
      May 20 2016 at 12:24 pm

      Hi Tarini, I have a Manivannan account since 3 yrs. I wonder why the amount of principle deducted is not reflected in the statement. I have to indirectly calculate from the difference of drawing power of current and previous month. And also addition of interest debited and principle reduced (drawing power change) is not equal to EMI (when I have sizable amount as deposit, the interest comes down, but principle reduced is not increased complimentarily). May we lose our money if there is a defect in their software, as principle deduction is not transparent and not calculated by any method or formula.

    • Tarini
      Tarini
      Jun 06 2016 at 6:08 pm

      Hi Premkumar

      I would suggest that you clarify the calculations with your lender as they will be able to assist you best. I will not be of any help here as I am unfamiliar with the bank’s internal processes and policies.
      Do let me know if I can help with anything else 🙂

  4. ravi
    Dec 21 2015 at 10:03 am
    Reply

    Hi,
    I have taken 26 lakh home loan and paying EMI since last 4 years. Since 2 years i have kept almost 5-10 lakh surplus amount in that but still my Drawing power is showing almost 25 lakh, there is only 1 lakh reduction in my net principal.
    Wanted to know is there something am missing or this calculation is wrong from bank.

    Thanks,
    Ravi

    • Tarini
      Tarini
      Dec 23 2015 at 2:45 pm

      Hey Ravi

      1. I would suggest that you check the amortization schedule provided by your bank and cross check the reductions in principal amount against the projected reductions in the schedule. Generally, the principal amount reduces slowly initially, this is a standard practice across all banks, so this doesn’t look like a major problem 🙂
      2. Regarding the surplus balance of 5 – 10 lakhs that you are maintaining, this helps reduce only your book balance (the amount on which interest payable is calculated), it doesn’t reduce your drawing power directly. This just helps reduce the total interest you end up paying on your home loan over the entire loan tenure.
      I hope this helps 🙂

  5. veeresh
    Dec 17 2015 at 11:53 pm
    Reply

    Hi Tarani,

    I am not able to find principle amount in any of my transactions in while checking it through online. How can i find those details. Could you please mail me amortization excel for 2000000.

    Thanks,
    Veeresh

    • Tarini
      Tarini
      Dec 21 2015 at 4:13 pm

      Sure Veeresh, please find it as an attachment in the mail id provided by you 🙂 Do let me know if you need any further assistance.

  6. Manish Mehta
    Dec 16 2015 at 11:05 am
    Reply

    Can you pls email me the Amortization schedule under max gain excel to manish.stars@gmail.com. Also whether it is possible to workout the schedule using option of FULL EMI for CLP Loan?

    • Tarini
      Tarini
      Dec 17 2015 at 3:29 pm

      Hey Manish

      Please find the same as an attachment in the mail id shared by you. Regarding your query, yes, you can use the excel sheet to project approx EMI payments for full EMI payments.

  7. Anand Bhatia
    Oct 06 2015 at 11:20 am
    Reply

    Hi Tarini

    I have opted for Maxigain Home loan of 64L over a tenure of 20 yrs on current rate of interest. I request you to please help me by sending Amortization schedule excel to my mail id anand.bhatia77@yahoo.com. Further I need a guidance from you that my EMI have not yet started but I am paying huge sum as interest, please guide as to how I can minimize interest payout

    • Tarini
      Tarini
      Oct 07 2015 at 1:34 pm

      Hey Anand

      As requested, I have mailed a copy the amortization chart to you, do have a look. Have you opted for pre- EMI? If so, then for a certain period you will be paying only interest on the entire outstanding amount, after which full EMI payments will start. If that’s not the case, then please contact your bank for more clarification on this.

  8. Vam
    Sep 15 2015 at 8:00 pm
    Reply

    Hey Tarini,

    Can you pls email me the Amortization schedule excel to vamman100@gmail.com.
    Will appreciate your help.

    • Tarini
      Tarini
      Sep 16 2015 at 1:29 pm

      Hey Vam

      Please find the same as an attachment in the mail id provided by you 🙂

    • Naveen
      May 12 2016 at 7:01 pm

      Hi Tarini,

      Can you please send me the amortization excel sheet at my email ID arora_nav@yahoo.com Thanks for your help in advance. Regards, Naveen

    • Tarini
      Tarini
      Jun 07 2016 at 6:28 pm

      Hi Naveen

      I have mailed the same to the email id provided by you, do feel free to write in regarding any further queries 🙂

  9. Saurabh Uttamchandani
    Aug 24 2015 at 5:09 pm
    Reply

    Hi Tarini,

    Hi,

    I have a SBI Loan with Max gain facility. Can you please share me the latest amortization schedule Excel sheet for 2015 .Thanks in advance

    Saurabh

    • Tarini
      Tarini
      Aug 25 2015 at 1:01 pm

      Hey Saurabh

      Please find the same as an attachment in the mail id provided by you 🙂

  10. Jojo
    Aug 13 2015 at 3:15 pm
    Reply

    Thank You so much

    • Tarini
      Tarini
      Aug 13 2015 at 4:11 pm

      we are happy to help 🙂

  11. Jojo
    Aug 13 2015 at 11:46 am
    Reply

    Hi,

    I have a SBI Loan with Max gain facility. Can you please share me the latest amortization schedule Excel sheet for 2015 .

    -Jojo

    • Tarini
      Tarini
      Aug 13 2015 at 12:43 pm

      Hey Jojo

      Please find the same as an attachment in the mail id specified by you. the same can also be downloaded from here 🙂

  12. Thirumeni Alagar
    Aug 07 2015 at 4:58 pm
    Reply

    Hi, .I have a SBI Loan with Max gain facility. Please share me the amortization schedule . Thanks in advance.

    • Tarini
      Tarini
      Aug 07 2015 at 6:42 pm

      Hey Thirumeni Alagar

      I have mailed an excel version of the amortization schedule to the mail id specified, please find it as an attachment 🙂

    • Gokul
      Dec 25 2015 at 2:10 pm

      can you also please send the amortization Xl to my e mail ID gokul_harur@yahoo.co.in. I also have max gain account

    • Tarini
      Tarini
      Dec 25 2015 at 3:38 pm

      Hey Gokul, please find the same as an attachment in the mail id provided by you 🙂

  13. Chetan
    Aug 03 2015 at 12:21 pm
    Reply

    hi,
    Please mail me amortization schedule on my email id: chetanattarde@gmail.com

    • Tarini
      Tarini
      Aug 03 2015 at 12:24 pm

      Hey Chetan

      Please find the same as an attachment in the mail id provided by you 🙂

  14. Sandy
    Jul 15 2015 at 9:55 am
    Reply

    Hi,
    This is Sandeep. I have taken Max gain policy for loan amount of 25 L. During last disbursement of loan, i seen that the amount available in Limit was 24.6 L instead of 25L. so my question is how that amount has been reduced. Another question is if i park some amount in OD then how will it be effective for lowering interest. We use to say that neither EMI nor tenure is going to reduce but only interest will come down. EMI includes principle plus interest. If my EMI is not going to change for entire tenure period then how this lowing interest is going to help. please elaborate. Also please send amortization excel for sandy.cfd@gmail.com

    • Tarini
      Tarini
      Jul 23 2015 at 2:48 pm

      Hey Sandy

      Here’s a response to all your queries:
      1. Please contact your bank regarding the reduced sanction amount, they will be able to guide you best in this regard.
      2. By parking money in your OD account, you will be reducing the book balance (amount on which interest is calculated on a daily basis), by doing so, your total interest outgo will get reduced.
      3. This reduction in interest will not alter your EMI, it will help you close the loan faster by reducing the total loan amount.
      4. I have mailed the amortization schedule to you, please have a look.

  15. Ananth
    Jul 14 2015 at 1:13 am
    Reply

    can u please send the max gain amortization excel sheet to my email id, ananth

    • Tarini
      Tarini
      Jul 23 2015 at 12:29 pm

      Hey ananth

      Please find the same as an attachment in the mail id provided by you.

  16. anil
    Jun 05 2015 at 11:17 am
    Reply

    can someone help with the Amortization excel to this email id plz.
    anildhamija2@gmail.com
    regards

    • Tarini
      Tarini
      Jul 23 2015 at 12:38 pm

      Hey Anil
      Please find the same as an attachment in the mail id provided by you.

  17. Shubh
    May 31 2015 at 5:34 am
    Reply

    Hi – Thanks for the nice article. Can you please send amortization excel for a loan of 55L at 10.25% for 20 years to my email. My EMI is Rs 54000. Thank you.

    • Tarini
      Tarini
      Jul 23 2015 at 12:39 pm

      Hey Shubh

      Please find the same as an attachment in the mail id provided by you.

  18. Nilesh
    May 25 2015 at 3:58 pm
    Reply

    Can you please email the excel to me please?

    • Tarini
      Tarini
      Aug 03 2015 at 12:12 pm

      Hey Nilesh

      The same has been mailed to you on the mail id provided, please have a look 🙂

  19. murali mohan
    Apr 25 2015 at 12:44 am
    Reply

    can anyone please send amortization excel for amount 16 lakhs as per current sbi rate of interest to murali.sspt@gmail.com

  20. murali mohan
    Apr 22 2015 at 12:42 pm
    Reply

    I have one query:
    if I have choose SBI Maxgain HOme Loan, and park some surplus amount in OD or maxgain account.. is my tenure or emi is going to be reduced? if not extra interest gained due to surplus amount parked in maxgain or OD account will be credited to Maxgain account..

    can i withdraw amount from maxgain account anytime please…

    • Priyanka
      Apr 23 2015 at 4:48 pm

      Hi Murali,
      Yes, you can withdraw the amount from your maxgain account any time.

  21. murali mohan
    Apr 22 2015 at 12:37 pm
    Reply

    anyone please send amortization excel for amount 1600000 (16 lakhs) as per current sbi rate of interest to murali.sspt@gmail.com

    • Tarini
      Tarini
      Jul 23 2015 at 12:39 pm

      Hey Murli Mohan

      Please find the same as an attachment in the mail id provided by you.

  22. Divesh
    Apr 07 2015 at 11:22 am
    Reply

    can u please send the max gain amortization excel sheet to my email id

    • Ashwini Menon
      Ashwini Menon
      Apr 07 2015 at 12:51 pm

      Hi Divesh,

      We shave emailed the Amortization excel sheet to you.

    • Anwar
      Jun 02 2015 at 11:08 pm

      Hi Ashwini, Can you please share the Amortization excel sheet with me please. Thanks

    • Tarini
      Tarini
      Jul 23 2015 at 12:38 pm

      Hey Anwar

      Please find the same as an attachment in the mail id provided by you.

  23. Shraddha Sharma
    Mar 16 2015 at 3:47 pm
    Reply

    Hi Tarini,
    Can you please share the maxgain amortization excel sheet ..

    • Tarini
      Tarini
      Mar 18 2015 at 7:53 pm

      Hey Shraddha

      Please find it attached in the mail sent to the id specified by you 🙂

  24. modthepc
    Sep 11 2014 at 2:19 pm
    Reply

    Ideally the principal component of the installment should be increasing gradually. But why does it go up and down in this case (from 1584 to 902 …and then to 354 ?

    • Tarini
      Tarini
      Sep 11 2014 at 4:26 pm

      Hi modthepc
      Yes, the principal component does increase gradually, but this change is spread over the entire loan tenure. In the example shown here, we have taken EMIs of only 7 months. This doesn’t represent the flow for the entire loan tenure. the principal component can fluctuate from month to month, as shown, depending on the bank’s policy.

    • modthepc
      Sep 11 2014 at 7:21 pm

      What kind of bank policy would that be causing the principal component to go up and down rather than gradually increase ? Just trying to understand since wouldn’t it be a violation of RBI guidelines to divert more funds towards interest component at any given month (it happens once they bring down the principal component any month) .?

    • Tarini
      Tarini
      Sep 11 2014 at 8:19 pm

      @modthepc, making the amortization schedule and deciding the percentage of interest and principal component is solely at the discretion of the bank. Hence I will not be able to help you with bank policy as that varies from bank to bank.
      As far as the legitimacy of the amortization schedule in question goes, its an excerpt from a genuine amortization schedule of a customer which has been put up with prior consent and intimation.
      I hope this answers your queries.