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Free Business Loan EMI Calculator
This business loan EMI calculator works out your monthly instalment from the loan amount, the yearly interest rate and the tenure. It also shows the total interest, the total you will repay and a year-by-year schedule, so you can see how each EMI splits between interest and principal.
₹10 lakh
Use the yearly rate from your loan offer, not a flat rate.
36 monthly instalments
Monthly EMI
₹34,178
36 monthly instalments
- Loan amount
- ₹10,00,000
- Total interest
- ₹2,30,395
- Total payable
- ₹12,30,395
- Interest share of total
- 19%
Reducing-balance method with a fixed rate. Processing fees, insurance and GST on fees are not included.
Year-by-year repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹2,88,157 | ₹1,21,974 | ₹7,11,843 |
| 2 | ₹3,31,191 | ₹78,940 | ₹3,80,652 |
| 3 | ₹3,80,652 | ₹29,480 | ₹0 |
An estimate only. Your lender’s sanction letter has the final EMI, fees and terms.
How to use
How to use the Business Loan EMI Calculator
- 1
Enter the loan amount in rupees. The hint shows it in lakh so you can check the number of zeros.
- 2
Enter the yearly interest rate from your loan offer. Decimals such as 13.75 are allowed.
- 3
Choose whether you want to enter the tenure in years or in months, then type the tenure.
- 4
Read the EMI, the total interest and the total payable in the result card.
- 5
Open the year-by-year schedule to see how much principal and interest you pay each year and what is left to repay.
How the EMI is worked out
The calculator uses the standard reducing-balance formula that most banks and lenders use. The yearly rate is divided by 12 to get a monthly rate. The EMI is then the loan amount times the monthly rate times (1 + monthly rate) to the power of the number of months, divided by (1 + monthly rate) to the power of the number of months, minus 1.
As an example, ₹10 lakh at 12% a year for 60 months gives an EMI of about ₹22,244. Over five years you pay about ₹13.35 lakh, so the interest comes to about ₹3.35 lakh.
When the interest rate is zero, the EMI is simply the loan amount divided by the number of months.
Why early EMIs are mostly interest
Each month, interest is charged on the balance still owed. In the first months that balance is close to the full loan, so a large part of the EMI goes to interest and a small part reduces the loan.
As the balance falls, the interest part shrinks and the principal part grows, while the EMI stays the same. The year-by-year schedule shows this clearly. It also explains why prepaying early in the loan saves more interest than prepaying near the end.
Tenure, rate and total cost
A longer tenure lowers the EMI but raises the total interest, because you owe money for longer. A shorter tenure does the opposite. Try a few tenures in the calculator to see the trade-off for your own numbers.
Some lenders quote a flat rate, which charges interest on the full loan for the whole tenure. A flat rate looks lower than a reducing-balance rate but costs more. Enter the reducing-balance rate here, and ask the lender for it if the offer only shows a flat rate.
The result does not include processing fees, insurance, GST on fees, or prepayment charges. Your lender’s sanction letter has the final EMI and terms, so compare it with this estimate before you sign.
Plan the EMI against your cash flow
An EMI is a fixed monthly outflow, while business income often moves with the season. Before you borrow, check that your slowest months can still cover the EMI along with salaries, rent and supplier payments. Software that tracks receivables and payables in one place makes that check much easier.
FAQ
Frequently asked questions
Enter the yearly reducing-balance rate from your loan offer. If the lender quotes a flat rate, ask for the reducing-balance equivalent, because entering a flat rate here will understate your real cost.
No. The calculator covers principal and interest only. Processing fees, GST on those fees, insurance and prepayment charges are extra. Add them to the total payable when you compare offers.
Yes. Switch the tenure to months and type the number of instalments. When you switch, the calculator converts the tenure you already entered, rounding to whole years when you switch back to years.
Interest is charged on the balance still owed, which is highest at the start. So early EMIs are mostly interest. The principal part grows each month as the balance falls.
It should be close for a fixed-rate loan. Small differences come from rounding, the date of the first EMI and broken-period interest. For floating-rate loans, the EMI or tenure changes when the rate changes.
Need this built into your own software?Talk to us about Custom software.
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