Business Loan EMI Calculator
Enter the loan amount, rate and tenure to see the monthly EMI of a business term loan and the total interest it will add to your costs.
Results
Monthly EMI
₹58,170.63
- Total interest
- ₹9,90,238
- Total payment
- ₹34,90,238
- Principal + interest
- Number of payments
- 60
Your monthly EMI is ₹58,170.63 for 60 payments, with ₹9,90,238 in total interest.
Principal vs interest
- Principal₹25,00,000 (71.6%)
- Total interest₹9,90,238 (28.4%)
Yearly payment schedule (5 rows)
| Period | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| Year 1 | ₹3,71,272 | ₹3,26,775 | ₹6,98,048 | ₹21,28,728 |
| Year 2 | ₹4,26,719 | ₹2,71,329 | ₹6,98,048 | ₹17,02,009 |
| Year 3 | ₹4,90,446 | ₹2,07,602 | ₹6,98,048 | ₹12,11,563 |
| Year 4 | ₹5,63,690 | ₹1,34,357 | ₹6,98,048 | ₹6,47,873 |
| Year 5 | ₹6,47,873 | ₹50,175 | ₹6,98,048 | ₹0 |
Show the calculation steps
- Monthly interest rate r = 14% ÷ 12 = 1.16667% (0.0116667 as a decimal).
- Number of monthly payments n = 5 years = 60 payments.
- (1 + r)^n = 2.0056, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹58,170.63.
- Total payment = EMI × n = ₹58,170.63 × 60 = ₹34,90,238.
- Total interest = total payment − principal = ₹34,90,238 − ₹25,00,000 = ₹9,90,238.
- Lenders may round the EMI to the nearest whole currency unit, so your bank's figure can differ slightly.
Planning repayments for a business
Business loans are repaid from cash flow, so check that the EMI is comfortably covered by expected monthly surplus, including in slower months.
Interest on business borrowing is generally treated as an allowable business expense, but check the rules with your accountant.
Term loans and working-capital lines
This calculator models an equal-EMI term loan. Overdrafts and cash credit charge interest only on the amount used, so their cost depends on how much you draw and cannot be shown with a single EMI.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total payment = EMI × n
Total interest = Total payment − P
Where:
- P
- = Principal, the loan amount
- r
- = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly payments
Example calculation
₹25,00,000 business loan at 14% for 5 years
Inputs
- Loan Amount
- ₹25,00,000
- Interest Rate
- 14 %
- Loan Tenure
- 5 years
Result
- Monthly EMI
- ₹58,170.63
- Total interest
- ₹9,90,238
- Total payment
- ₹34,90,238
- Number of payments
- 60
Step-by-step
- Monthly interest rate r = 14% ÷ 12 = 1.16667% (0.0116667 as a decimal).
- Number of monthly payments n = 5 years = 60 payments.
- (1 + r)^n = 2.0056, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹58,170.63.
- Total payment = EMI × n = ₹58,170.63 × 60 = ₹34,90,238.
- Total interest = total payment − principal = ₹34,90,238 − ₹25,00,000 = ₹9,90,238.
Important notes
- Processing fees, collateral charges and insurance are not included.
- Some business loans have a moratorium or balloon payment that this simple EMI does not model.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
Can I use this for an MSME loan?
Yes, for any loan repaid in equal monthly instalments. Use the rate and tenure in your sanction letter.
Is the interest on a business loan tax-deductible?
Generally interest on borrowing used for business is an allowable expense, but rules and limits apply. Ask your accountant.
What if my loan has a balloon payment?
Use the balloon-style repayment options in the gold loan calculator for a bullet structure, or ask the lender for a schedule.
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