Loan Repayment & Amortization
Configure Repayment Terms
Equal Monthly Installments Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
💡 Characteristics of Equal Monthly Installments (EMI)
Constant Monthly Payment: The monthly payment amount (Principal + Interest) remains identical from start to finish. While it is easy to budget, the interest portion dominates in the early stages, causing the principal to decrease slowly.
Recalculation of Interest: Each month, the interest is calculated by multiplying the remaining balance by the monthly rate (Annual rate / 12). The portion of the payment exceeding this interest is allocated to paying down the principal.