Business Loan EMI Calculator
Enter the loan amount, the annual rate and the tenure in months to see your monthly instalment, the total interest you will pay and the full amount payable.
Use the reducing-balance rate on the sanction letter, not a flat rate — a flat rate looks lower but costs far more.
36 months (3 years)
Indicative only. Processing fees, insurance and GST on charges are not included — ask the lender for the all-in cost before you sign.
What actually drives your EMI
Three numbers decide the instalment, and only two of them are usually negotiable. Knowing how each one pulls the total helps you argue for the right loan rather than the easy one.
Reducing balance, not flat
On a reducing-balance loan you pay interest only on what is still outstanding, so the interest portion of every instalment shrinks month by month. A flat rate ignores your repayments entirely and costs far more for the same headline number.
Tenure is a trade-off
A longer tenure lowers the instalment and raises the total interest — you simply rent the money for longer. Move the tenure up and down in the calculator and watch the total payable move against the EMI.
Can the shop carry it?
The EMI is a fixed cost from the day it starts. Add it to your monthly rent and salaries, then check the break-even calculator — if the extra units needed look unrealistic for your footfall, the loan is too big.
The maths
- Monthly rate: r = annual rate ÷ 12 ÷ 100.
- EMI: P × r × (1 + r)n ÷ ((1 + r)n − 1).
- Total payable: EMI × n.
- Total interest: total payable − principal.
- At 0%: the formula collapses, and EMI is simply principal ÷ n.
Plan the numbers around the loan
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EMI calculator FAQ
Lenders use the reducing-balance annuity formula: 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 tenure in months. The instalment stays the same every month, but its split shifts — early EMIs are mostly interest, later ones are mostly principal.