Calculator
Business Loan EMI Calculator
Business and MSME loans carry higher rates than home loans, so the EMI and total interest deserve a close look before you borrow. This calculator shows the monthly EMI, the total interest over the tenure, and the total amount repaid on a term or working-capital loan. Use it to check whether the EMI fits your monthly cash flow and to compare offers from banks, NBFCs, and MSME schemes before signing.
MSME/business loan rates are typically 11–20%.
Principal vs interest paid each year
- Principal
- Interest
Excludes processing fees (typically 1–3%), GST on charges, collateral/insurance costs, and any moratorium. CGTMSE-backed and government-scheme loans may carry different terms. Treat this as an estimate and confirm the full cost with the lender.
What your result means
- Compare flat versus reducing-balance rates carefully — a flat rate looks lower but can cost nearly twice as much, because it charges interest on the original amount throughout.
- Processing fees, insurance, and charges can add 2–4% upfront, so judge the all-in cost, not just the rate.
- Match the tenure to the life of what you are funding — a short-term need financed long, or a long-term asset financed short, both create strain.
How to use this calculator
- Enter the loan amount your business needs.
- Enter the annual interest rate the lender quotes (do not divide it yourself).
- Set the tenure in years.
- Check the EMI against your monthly cash flow — keep total EMIs within what slow months can bear.
- Compare total interest across offers; a lower rate or shorter tenure can save lakhs.
The formula
EMI = [P × r × (1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], where P = loan amount, r = monthly rate (annual ÷ 12 ÷ 100), n = months (years × 12). Total interest = (EMI × n) − P.
Worked example
A ₹10,00,000 working-capital loan at 14% for 5 years: r ≈ 0.01167/month, n = 60. EMI ≈ ₹23,268 per month. Total repayment ≈ ₹13,96,000, of which roughly ₹3,96,000 is interest. Shortening to 3 years raises the EMI to about ₹34,178 but cuts total interest to roughly ₹2,30,000 — a saving worth weighing against the higher monthly burden.
When to use it
- Sizing a term loan for equipment or expansion against monthly cash flow.
- Comparing bank vs NBFC vs MSME-scheme loan offers.
- Stress-testing whether the EMI survives a slow season.
- Deciding between a shorter, costlier-per-month loan and a longer, costlier-overall one.