Business Loan EMI Calculator

One of the popular means of repayment of loans is through EMIs or ‘Equated Monthly Instalments’. It refers to the total amount to be paid every month until the loan has been fully repaid with interest. In case of loan EMIs, the amount to be paid consists of two parts – the principal amount and interest on the loan.

Even though the amount paid will remain same, the business loan EMI calculator will vary the percentage of interest and principal recovered each month. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage depends on the interest rate. With each successive business loan EMI payment, you’ll pay more towards the principal amount and less in interest.

Determining the exact EMI to be paid is important to SMEs. It will help in planning the cash flows and the repayments. This is where a business loan EMI calculator (also known as term loan EMI calculator) comes in handy.

Formula for business loan calculator

The EMI payable depends on three main factors – the total amount of loan, the duration of borrowing and the rate of interest agreed upon. The formula used by EMI calculator for business loans is as follows:

emi formula

where

E = EMI payable (each month)
P = Principal loan amount
r = Rate of interest per month (i.e., annual interest is recalculated for a monthly basis)
n = Duration of loan (in number of months)

How to use a business loan calculator

There are two ways of putting the term loan calculator to work. The first is to compute the EMI manually and the second is to use an online tool. Even though both approaches will lead to the same result, an online business loan interest rates calculator is more fun and simple to use.

In 3-4 simple steps, you can determine the amount to be paid using business loan EMI calculator.

  • Step 1: Set the loan amount. This is the sum of money that you intend to borrow.
  • Step 2: Set the interest rate. This number will usually be determined by the lender.
  • Step 3: Set the loan-period (in number of months). Chose a duration that allows you to comfortably repay at a pace that is comfortable for you.
  • Step 4: Mention the processing fee (if any). An intermediary/lender may often enforce this fee.

After keying in the data, the business loan calculator will give you the exact EMI payable.

Benefits of using business loan calculator

In addition to sparing you tedious manual computations, a business loan EMI calculator offers many benefits, such as:

  • Smart visualization: The business loan online calculator can visualize the output as pie charts and other visual representations that are easy to understand.
  • Compare lenders: The term loan calculator can help you compare the opportunities presented by different lenders side-by-side. This helps you choose a solution that suits you the best.
  • Experiment with different parameters: SMEs can experiment by varying the loan amount, tenure and/or interest to see how it impacts their EMI. Thus the term loan EMI calculator can help SMEs in negotiating a better deal.

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EMI Calculator

EMI

₹ 0 /-

Select loan amount from ₹1 Lakh to ₹50 Lakhs
Select duration (in Months)
Select interest (% pa)