Reducing Loan Calculator
Free reducing loan calculator to calculate EMI, monthly payments, total interest, and repayment schedules using reducing balance method. Plan your loans for India (SBI, HDFC), UAE, New Zealand, Malaysia, and more. Export to Excel.
Loan Details
Extra Payments (Optional)
Results
Monthly Principal
₹8,333.33
Loan Amount
₹5,00,000.00
Total Interest
₹1,33,437.50
Total Payment
₹6,33,437.30
Total Cost
₹6,33,437.50
Interest Rate
10.50%
Payment Schedule (Repayment Schedule)
| Month | Payment Date | Beginning Balance | Principal | Interest | Extra Payment | Total Payment | Ending Balance |
|---|---|---|---|---|---|---|---|
| 1 | November 1, 2025 | ₹5,00,000.00 | ₹8,333.33 | ₹4,375.00 | ₹0.00 | ₹12,708.33 | ₹4,91,666.67 |
| 2 | December 1, 2025 | ₹4,91,666.67 | ₹8,333.33 | ₹4,302.08 | ₹0.00 | ₹12,635.42 | ₹4,83,333.33 |
| 3 | January 1, 2026 | ₹4,83,333.33 | ₹8,333.33 | ₹4,229.17 | ₹0.00 | ₹12,562.50 | ₹4,75,000.00 |
| 4 | February 1, 2026 | ₹4,75,000.00 | ₹8,333.33 | ₹4,156.25 | ₹0.00 | ₹12,489.58 | ₹4,66,666.67 |
| 5 | March 1, 2026 | ₹4,66,666.67 | ₹8,333.33 | ₹4,083.33 | ₹0.00 | ₹12,416.67 | ₹4,58,333.33 |
| 6 | April 1, 2026 | ₹4,58,333.33 | ₹8,333.33 | ₹4,010.42 | ₹0.00 | ₹12,343.75 | ₹4,50,000.00 |
| 7 | May 1, 2026 | ₹4,50,000.00 | ₹8,333.33 | ₹3,937.50 | ₹0.00 | ₹12,270.83 | ₹4,41,666.67 |
| 8 | June 1, 2026 | ₹4,41,666.67 | ₹8,333.33 | ₹3,864.58 | ₹0.00 | ₹12,197.92 | ₹4,33,333.33 |
| 9 | July 1, 2026 | ₹4,33,333.33 | ₹8,333.33 | ₹3,791.67 | ₹0.00 | ₹12,125.00 | ₹4,25,000.00 |
| 10 | August 1, 2026 | ₹4,25,000.00 | ₹8,333.33 | ₹3,718.75 | ₹0.00 | ₹12,052.08 | ₹4,16,666.67 |
| 11 | September 1, 2026 | ₹4,16,666.67 | ₹8,333.33 | ₹3,645.83 | ₹0.00 | ₹11,979.17 | ₹4,08,333.33 |
| 12 | October 1, 2026 | ₹4,08,333.33 | ₹8,333.33 | ₹3,572.92 | ₹0.00 | ₹11,906.25 | ₹4,00,000.00 |
| 13 | November 1, 2026 | ₹4,00,000.00 | ₹8,333.33 | ₹3,500.00 | ₹0.00 | ₹11,833.33 | ₹3,91,666.67 |
| 14 | December 1, 2026 | ₹3,91,666.67 | ₹8,333.33 | ₹3,427.08 | ₹0.00 | ₹11,760.42 | ₹3,83,333.33 |
| 15 | January 1, 2027 | ₹3,83,333.33 | ₹8,333.33 | ₹3,354.17 | ₹0.00 | ₹11,687.50 | ₹3,75,000.00 |
| 16 | February 1, 2027 | ₹3,75,000.00 | ₹8,333.33 | ₹3,281.25 | ₹0.00 | ₹11,614.58 | ₹3,66,666.67 |
| 17 | March 1, 2027 | ₹3,66,666.67 | ₹8,333.33 | ₹3,208.33 | ₹0.00 | ₹11,541.67 | ₹3,58,333.33 |
| 18 | April 1, 2027 | ₹3,58,333.33 | ₹8,333.33 | ₹3,135.42 | ₹0.00 | ₹11,468.75 | ₹3,50,000.00 |
| 19 | May 1, 2027 | ₹3,50,000.00 | ₹8,333.33 | ₹3,062.50 | ₹0.00 | ₹11,395.83 | ₹3,41,666.67 |
| 20 | June 1, 2027 | ₹3,41,666.67 | ₹8,333.33 | ₹2,989.58 | ₹0.00 | ₹11,322.92 | ₹3,33,333.33 |
| 21 | July 1, 2027 | ₹3,33,333.33 | ₹8,333.33 | ₹2,916.67 | ₹0.00 | ₹11,250.00 | ₹3,25,000.00 |
| 22 | August 1, 2027 | ₹3,25,000.00 | ₹8,333.33 | ₹2,843.75 | ₹0.00 | ₹11,177.08 | ₹3,16,666.67 |
| 23 | September 1, 2027 | ₹3,16,666.67 | ₹8,333.33 | ₹2,770.83 | ₹0.00 | ₹11,104.17 | ₹3,08,333.33 |
| 24 | October 1, 2027 | ₹3,08,333.33 | ₹8,333.33 | ₹2,697.92 | ₹0.00 | ₹11,031.25 | ₹3,00,000.00 |
| 25 | November 1, 2027 | ₹3,00,000.00 | ₹8,333.33 | ₹2,625.00 | ₹0.00 | ₹10,958.33 | ₹2,91,666.67 |
| 26 | December 1, 2027 | ₹2,91,666.67 | ₹8,333.33 | ₹2,552.08 | ₹0.00 | ₹10,885.42 | ₹2,83,333.33 |
| 27 | January 1, 2028 | ₹2,83,333.33 | ₹8,333.33 | ₹2,479.17 | ₹0.00 | ₹10,812.50 | ₹2,75,000.00 |
| 28 | February 1, 2028 | ₹2,75,000.00 | ₹8,333.33 | ₹2,406.25 | ₹0.00 | ₹10,739.58 | ₹2,66,666.67 |
| 29 | March 1, 2028 | ₹2,66,666.67 | ₹8,333.33 | ₹2,333.33 | ₹0.00 | ₹10,666.67 | ₹2,58,333.33 |
| 30 | April 1, 2028 | ₹2,58,333.33 | ₹8,333.33 | ₹2,260.42 | ₹0.00 | ₹10,593.75 | ₹2,50,000.00 |
| 31 | May 1, 2028 | ₹2,50,000.00 | ₹8,333.33 | ₹2,187.50 | ₹0.00 | ₹10,520.83 | ₹2,41,666.67 |
| 32 | June 1, 2028 | ₹2,41,666.67 | ₹8,333.33 | ₹2,114.58 | ₹0.00 | ₹10,447.92 | ₹2,33,333.33 |
| 33 | July 1, 2028 | ₹2,33,333.33 | ₹8,333.33 | ₹2,041.67 | ₹0.00 | ₹10,375.00 | ₹2,25,000.00 |
| 34 | August 1, 2028 | ₹2,25,000.00 | ₹8,333.33 | ₹1,968.75 | ₹0.00 | ₹10,302.08 | ₹2,16,666.67 |
| 35 | September 1, 2028 | ₹2,16,666.67 | ₹8,333.33 | ₹1,895.83 | ₹0.00 | ₹10,229.17 | ₹2,08,333.33 |
| 36 | October 1, 2028 | ₹2,08,333.33 | ₹8,333.33 | ₹1,822.92 | ₹0.00 | ₹10,156.25 | ₹2,00,000.00 |
| 37 | November 1, 2028 | ₹2,00,000.00 | ₹8,333.33 | ₹1,750.00 | ₹0.00 | ₹10,083.33 | ₹1,91,666.67 |
| 38 | December 1, 2028 | ₹1,91,666.67 | ₹8,333.33 | ₹1,677.08 | ₹0.00 | ₹10,010.42 | ₹1,83,333.33 |
| 39 | January 1, 2029 | ₹1,83,333.33 | ₹8,333.33 | ₹1,604.17 | ₹0.00 | ₹9,937.50 | ₹1,75,000.00 |
| 40 | February 1, 2029 | ₹1,75,000.00 | ₹8,333.33 | ₹1,531.25 | ₹0.00 | ₹9,864.58 | ₹1,66,666.67 |
| 41 | March 1, 2029 | ₹1,66,666.67 | ₹8,333.33 | ₹1,458.33 | ₹0.00 | ₹9,791.67 | ₹1,58,333.33 |
| 42 | April 1, 2029 | ₹1,58,333.33 | ₹8,333.33 | ₹1,385.42 | ₹0.00 | ₹9,718.75 | ₹1,50,000.00 |
| 43 | May 1, 2029 | ₹1,50,000.00 | ₹8,333.33 | ₹1,312.50 | ₹0.00 | ₹9,645.83 | ₹1,41,666.67 |
| 44 | June 1, 2029 | ₹1,41,666.67 | ₹8,333.33 | ₹1,239.58 | ₹0.00 | ₹9,572.92 | ₹1,33,333.33 |
| 45 | July 1, 2029 | ₹1,33,333.33 | ₹8,333.33 | ₹1,166.67 | ₹0.00 | ₹9,500.00 | ₹1,25,000.00 |
| 46 | August 1, 2029 | ₹1,25,000.00 | ₹8,333.33 | ₹1,093.75 | ₹0.00 | ₹9,427.08 | ₹1,16,666.67 |
| 47 | September 1, 2029 | ₹1,16,666.67 | ₹8,333.33 | ₹1,020.83 | ₹0.00 | ₹9,354.17 | ₹1,08,333.33 |
| 48 | October 1, 2029 | ₹1,08,333.33 | ₹8,333.33 | ₹947.92 | ₹0.00 | ₹9,281.25 | ₹1,00,000.00 |
| 49 | November 1, 2029 | ₹1,00,000.00 | ₹8,333.33 | ₹875.00 | ₹0.00 | ₹9,208.33 | ₹91,666.67 |
| 50 | December 1, 2029 | ₹91,666.67 | ₹8,333.33 | ₹802.08 | ₹0.00 | ₹9,135.42 | ₹83,333.33 |
| 51 | January 1, 2030 | ₹83,333.33 | ₹8,333.33 | ₹729.17 | ₹0.00 | ₹9,062.50 | ₹75,000.00 |
| 52 | February 1, 2030 | ₹75,000.00 | ₹8,333.33 | ₹656.25 | ₹0.00 | ₹8,989.58 | ₹66,666.67 |
| 53 | March 1, 2030 | ₹66,666.67 | ₹8,333.33 | ₹583.33 | ₹0.00 | ₹8,916.67 | ₹58,333.33 |
| 54 | April 1, 2030 | ₹58,333.33 | ₹8,333.33 | ₹510.42 | ₹0.00 | ₹8,843.75 | ₹50,000.00 |
| 55 | May 1, 2030 | ₹50,000.00 | ₹8,333.33 | ₹437.50 | ₹0.00 | ₹8,770.83 | ₹41,666.67 |
| 56 | June 1, 2030 | ₹41,666.67 | ₹8,333.33 | ₹364.58 | ₹0.00 | ₹8,697.92 | ₹33,333.33 |
| 57 | July 1, 2030 | ₹33,333.33 | ₹8,333.33 | ₹291.67 | ₹0.00 | ₹8,625.00 | ₹25,000.00 |
| 58 | August 1, 2030 | ₹25,000.00 | ₹8,333.33 | ₹218.75 | ₹0.00 | ₹8,552.08 | ₹16,666.67 |
| 59 | September 1, 2030 | ₹16,666.67 | ₹8,333.33 | ₹145.83 | ₹0.00 | ₹8,479.17 | ₹8,333.33 |
| 60 | October 1, 2030 | ₹8,333.33 | ₹8,333.33 | ₹72.92 | ₹0.00 | ₹8,406.25 | ₹0.00 |
Formula
Monthly Principal = Loan Amount / Number of Months
Monthly Interest = Remaining Balance × Monthly Rate
Total Payment = Principal + Interest
Understanding Reducing Loan Calculator
A reducing loan calculator is an essential financial tool that helps borrowers understand how their loan payments work under the reducing balance method. This calculator is particularly useful for personal loans, home loans, and other types of credit where interest is calculated on the outstanding principal balance.
What is a Reducing Loan?
A reducing loan, also known as a reducing balance loan, is a type of loan where interest is calculated on the remaining principal balance. As you make payments, the principal decreases, which means the interest portion of your payment also decreases over time. This is different from flat rate loans where interest is calculated on the original loan amount throughout the entire term.
Reducing Balance Method vs EMI Method
Our reducing loan calculator supports two main repayment methods:
- Reducing Balance Method (Equal Principal): In this method, you pay a fixed principal amount each month, plus interest on the remaining balance. Your total monthly payment decreases over time as the interest portion reduces.
- EMI Method (Equal Monthly Installment): This method calculates a fixed monthly payment that includes both principal and interest. The principal portion increases over time while the interest portion decreases, keeping the total payment constant.
Key Features of Our Reducing Loan Calculator
Our free online reducing loan calculator offers comprehensive features to help you plan your loan repayment:
- Multiple Countries: Calculate loans for India, UAE, New Zealand, Malaysia, Australia, and the United Kingdom with appropriate currency formatting.
- Bank Integration: Pre-configured interest rates for major banks including SBI, HDFC, ICICI, Axis Bank (India), ANZ, Westpac (New Zealand and Australia), and Maybank, CIMB (Malaysia).
- Repayment Methods: Choose between reducing balance method and EMI method based on your loan type and preference.
- Extra Payments: Calculate savings from making monthly or one-time extra payments to reduce your loan tenure or interest burden.
- Detailed Payment Schedule: View month-by-month breakdown showing principal, interest, and remaining balance.
- Excel Export: Download your payment schedule as a CSV file for further analysis in Excel or other spreadsheet applications.
- Formula Display: Understand the mathematical formulas used in calculations for transparency.
How to Use the Reducing Loan Calculator
Using our reducing loan calculator is straightforward:
- Select your country from the available options.
- Choose your bank (optional) to get pre-filled interest rates, or enter a custom rate.
- Select your preferred repayment method: Reducing Balance or EMI.
- Enter your loan amount, annual interest rate, and loan term in months.
- Set your loan start date.
- Optionally add extra payments to see how they affect your loan.
- Review the results including monthly payment, total interest, and payment schedule.
- Export the payment schedule to Excel for your records.
Benefits of Using a Reducing Loan Calculator
A reducing loan calculator helps you make informed financial decisions by:
- Understanding the true cost of borrowing including total interest payments.
- Planning your budget with accurate monthly payment estimates.
- Evaluating the impact of extra payments on loan tenure and interest savings.
- Comparing different loan options and repayment methods.
- Making prepayment decisions based on calculated savings.
Reducing Loan Calculator for Different Countries
Our calculator supports loans from various countries:
- India: Calculate reducing loans for SBI, HDFC, ICICI, Axis Bank, and other Indian banks. Perfect for personal loans, home loans, and vehicle loans.
- UAE: Calculate loans in AED with appropriate interest rates for UAE banks and financial institutions.
- New Zealand: Calculate loans in NZD with support for ANZ, Westpac, and other New Zealand banks.
- Malaysia: Calculate loans in MYR with support for Maybank, CIMB, Hong Leong Bank, and other Malaysian banks.
- Australia: Calculate loans in AUD with support for ANZ, Westpac, NAB, CommBank, and other Australian banks.
- United Kingdom: Calculate loans in GBP with appropriate rates for UK financial institutions.
Tips for Using Reducing Loan Calculator Effectively
To get the most accurate results from our reducing loan calculator:
- Use current interest rates from your lender for accurate calculations.
- Consider your financial capacity when planning extra payments.
- Review the payment schedule to understand how your loan balance decreases over time.
- Compare reducing balance method with EMI method to choose the best option for your situation.
- Export the schedule to Excel for long-term tracking and planning.
Whether you're planning a personal loan, home loan, or any other type of reducing balance loan, our free online calculator provides accurate calculations and detailed payment schedules. Start using our reducing loan calculator today to make informed financial decisions and plan your loan repayment strategy effectively.