I was asked how EMI interest and principal works – the idea of that is kinda complex, like the calculation describes. But the essential funda is: Take the total amount payable, pay the interest first and the remaining part of your EMI is the principal. You can calculate this easily using spreadsheet functions like PMT, PPMT and IPMT. I have demonstrated this, on a monthly basis, by using this excel sheet:

This is just for 12 months but you can extend it for any number of months.

You can find out exactly how much you’ve repaid at any month and how much is left, and of course, you see how your interest is front loaded on any such loan.

You can view the spreadsheet or download in Excel format.

Now, tell them about it: