Free Tool — Loan EMI Calculator
Business Loan EMI Calculator
Enter the loan amount, interest rate and tenure to see your monthly EMI, total interest and total repayment.
Monthly EMI
₹23,536.74
Total interest
₹64,881.67
Total payment
₹5,64,881.67
Know the monthly number before you sign
Whether it's a working capital loan, equipment financing or a line of credit to fund a new outlet, the EMI is the number that actually shows up against your cash flow every month. Comparing loan offers by interest rate alone can be misleading once tenure and processing costs are factored in.
Enter the loan amount, annual interest rate and tenure to get the EMI using the standard reducing-balance formula, along with the total interest you'll pay over the life of the loan — useful for comparing two offers side by side.
Loan EMI formula
Monthly rate r = Annual interest rate ÷ 12 ÷ 100, and n = tenure in months (years × 12). EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount. Total payment = EMI × n. Total interest = Total payment − P. At 0% interest the calculator simply divides: EMI = P ÷ n. This is the reducing-balance method, so each month's interest is charged only on the principal still outstanding.
How to use the Business Loan EMI Calculator
- 1Enter the amount you plan to borrow in the Loan amount field.
- 2Enter the Annual interest rate from the lender's offer, as a reducing-balance rate.
- 3Type the Tenure, then choose Months or Years below the field.
- 4Read the Monthly EMI, Total interest and Total payment, which update as you type.
- 5To compare two offers, change one input at a time, such as the tenure or the rate, and note the totals for each.
Worked example: EMI on a ₹10 lakh loan at 14%
Say you borrow ₹10,00,000 at 14% a year to fit out a second outlet. The monthly rate is 14 ÷ 12 ÷ 100 = 0.011667. Over 36 months the loan EMI calculator gives an EMI of ₹34,177.63, a total payment of ₹12,30,394.67 and total interest of ₹2,30,394.67. Stretch the same loan to 60 months and the EMI drops to ₹23,268.25, which is ₹10,909.38 less every month, but total interest rises to ₹3,96,095.05, or ₹1,65,700.38 more over the life of the loan.
Now compare two 36-month offers on the same ₹10 lakh. Offer A is 13% with a ₹20,000 processing fee; Offer B is 14% with no fee. At 13% the EMI is ₹33,693.95 and total interest is ₹2,12,982.27. Add the fee and Offer A's cost of borrowing comes to ₹2,32,982.27, which is ₹2,587.60 more than Offer B's ₹2,30,394.67. The lower rate is not the cheaper loan here, so add every fee to the calculator's total interest before you choose.
Checks before you take the loan
- Fit the EMI into your slowest month, not your average month, after rent, salaries and supplier payments are covered.
- Ask whether the first EMI includes broken-period interest for the days between disbursal and the first due date; the calculator assumes equal instalments from the first month.
- Check the prepayment and foreclosure charges in the sanction letter if you expect to close the loan early from festive-season or year-end cash.
- On a floating-rate loan, rerun the numbers at a rate 1 to 2 points higher, since lenders often extend the tenure rather than raise the EMI when rates go up.
- Interest on a loan used for the business is generally a deductible expense, but the principal part of each EMI is not, so ask your CA to split the EMIs correctly in your books.
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Loan EMI calculator FAQs
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments.
No — this calculates EMI based on principal, interest rate and tenure only. Add any processing fees or charges separately when comparing the true cost of different loan offers.
Use the annual interest rate as quoted by the lender. If a lender quotes a flat rate instead of a reducing-balance rate, the actual EMI will differ from what this calculator shows, since flat-rate loans charge interest on the full principal throughout the tenure.
A shorter tenure means a higher EMI but significantly less total interest paid, since less time passes with interest accruing on the outstanding balance. A longer tenure lowers the EMI but increases total interest paid over the loan.
Yes, as long as the loan is repaid in equal monthly instalments on a reducing balance, which is how most bank home, car, personal and business loans in India work. The maths does not change with the loan type. It will not match loans that charge a flat rate, use step-up or balloon repayments, or start with an interest-only period, because those do not follow equal EMIs.
The calculator divides the loan amount by the number of months, so a ₹6,00,000 interest-free loan over 24 months shows an EMI of ₹25,000 and total interest of zero. This is useful for an interest-free loan from a partner or family member. For a no-cost EMI offer on a purchase, read the invoice closely, since the interest is often recovered through a discount you do not get or a processing fee.
No. It shows the monthly EMI, total interest and total payment for the whole loan. Inside each EMI the interest share is largest at the start and falls every month as the balance reduces, while the principal share grows. For the exact split of every instalment, ask your lender for the amortisation schedule, which banks usually provide with the sanction letter or on request.
No. The figures you type are worked out in your browser and are not saved or sent anywhere, so they reset to the sample values when you reload the page. Note down the EMI and total interest for each offer if you want to compare them later. The calculator works the same on a phone, with the fields stacking in a single column.
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