Fixed Principal Loan Calculator

The Fixed Principal Loan Calculator helps you estimate the monthly repayment amount for a loan where the principal repayment remains constant, while the interest is calculated on the reducing balance. This type of repayment model ensures that a fixed portion of the principal is repaid each month, leading to gradually reducing interest payments. It’s especially useful for loans like home or personal loans where you want more predictable control over principal repayment.

You input the loan amount, interest rate, and loan tenure. The calculator splits the loan repayment into two parts: a fixed principal repayment each month and interest on the outstanding loan balance. Over time, the interest component reduces as the loan balance decreases, but the principal repayment remains constant. The calculator provides a detailed breakdown of each installment, showing the principal and interest portions for each month.

If you take out a loan of ₹5,00,000 at 8% interest over 5 years, the calculator will show you the monthly repayment, starting with a higher interest component that gradually decreases over time, while the principal remains constant. For instance, the first month’s repayment may be ₹12,500 in principal plus ₹3,333 in interest (on the outstanding balance), with subsequent months seeing the interest component decrease as the principal gets repaid.