Business Loan EMI Calculator
Plan the monthly repayment before you borrow. Move the sliders, or type an amount like 10 lakh.
Your loan
Your monthly EMI
₹10 lakh · 36 months · 15% p.a.
- Principal₹10,00,000
- Interest₹2,47,952
- Total amount payable
- ₹12,47,952
We'll carry ₹10 lakh over 36 months into the form.
Example: For a loan of ₹10,00,000 at 15% p.a. for 36 months, the EMI is ₹34,665 and the total amount payable is ₹12,47,952 (interest ₹2,47,952), excluding processing fee and taxes.
How your balance comes down
Early payments are mostly interest. The principal falls faster in the later years.
- Outstanding principal
- Interest paid so far
Year-wise repayment schedule
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | ₹2,85,054 | ₹1,30,930 | ₹7,14,946 |
| 2 | ₹3,30,878 | ₹85,106 | ₹3,84,068 |
| 3 | ₹3,84,068 | ₹31,916 | ₹0 |
Monthly EMI ₹34,665. Total interest ₹2,47,952. Total payable ₹12,47,952.
What is a business loan EMI?
EMI stands for equated monthly instalment: the fixed amount you pay your lender on the same date each month until the loan is repaid. Each EMI covers that month's interest and part of the loan itself.
Lenders set a business loan's rate from your business's turnover, its age and your credit history, so quotes vary more than on other loans. The calculator starts at a middle-of-the-range rate. Change it as soon as you have a quote.
How the EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P is the loan amount.
- r is the monthly interest rate: the yearly rate ÷ 12 ÷ 100.
- n is the number of monthly instalments.
A worked example
- P = ₹10,00,000
- r = 15 ÷ 12 ÷ 100 = 0.012500
- n = 36 instalments
Example: For a loan of ₹10,00,000 at 15% p.a. for 36 months, the EMI is ₹34,665 and the total amount payable is ₹12,47,952 (interest ₹2,47,952), excluding processing fee and taxes.
How to lower your EMI
Choose a longer tenure
Stretching ₹10 lakh from 36 months to 5 years lowers the EMI from ₹34,665 to ₹23,790 a month. The cost is ₹1,79,444 more in interest over the loan.
Prepay when you can
A lump sum cuts the balance that interest is charged on. You can keep the EMI and finish sooner, or keep the end date and pay less each month.
Try the prepayment calculatorLook for a lower rate
On the same loan, a rate half a percentage point lower (14.5% p.a.) saves ₹8,797 in interest over 36 months. Comparing lenders is how you find it.
Borrow a little less
Every ₹1 lakh you borrow adds about ₹3,467 to the monthly EMI at these terms. A larger down payment or a smaller loan lowers it directly.
The same loan over different tenures
A longer tenure lowers the EMI and raises the interest. Here is the loan the calculator opens with, over three tenures.
| Tenure | Monthly EMI | Total interest | Total payable |
|---|---|---|---|
| 36 months | ₹34,665 | ₹2,47,952 | ₹12,47,952 |
| 5 years | ₹23,790 | ₹4,27,396 | ₹14,27,396 |
| 7 years | ₹19,297 | ₹6,20,927 | ₹16,20,927 |
We are here to answer
all your questions
Equated monthly instalment. It is the fixed amount you pay your lender each month. Part of it is interest and the rest repays the loan, and the interest share shrinks as the balance falls.
Not necessarily. Rates differ widely between lenders and between businesses. Treat the rate here as your own estimate and change it when you get a quote.
For a term loan, yes. Overdrafts and working-capital lines work differently: you pay interest only on what you use. This calculator is for a term loan repaid in equal instalments.
The EMI is still due. A late EMI usually attracts a penalty and is reported to credit bureaus, so speak to your lender early if cash flow is tight.
No. The calculator shows the EMI on the loan amount alone. Processing fees, GST and any insurance are charged separately, or added to the loan if you choose to finance them. Your lender's Key Fact Statement lists every charge.
Lenders round the EMI to the nearest rupee and settle the difference in the last instalment. Some also charge interest for the exact number of days before your first EMI. The gap is usually small, but the lender's figure is the one you pay.
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