Business Loan EMI Calculator

Use this calculator to check whether a business loan EMI fits your monthly cash flow before you apply. Enter the loan amount, the rate offered and the tenure to see the EMI and the total cost of the loan.

Loan amount

₹

Interest rate (p.a.)

Tenure

months

Monthly EMI: ₹36,152
Principal: ₹10,00,000
Total interest: ₹3,01,486
Total amount payable: ₹13,01,486

How to use this calculator

Enter the business loan amount.
Enter the annual interest rate offered by the lender.
Choose the tenure in months (unsecured business loans are usually 12-60 months).
Check that the EMI is comfortably covered by your average monthly profit, not just revenue.

How EMI is calculated

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

Banks and NBFCs in India calculate EMIs on a reducing-balance basis: each month's interest is charged only on the principal still outstanding, so the interest part of your EMI falls over time while the principal part rises.

Here P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For example, ₹5,00,000 at 12% a year for 36 months gives r = 0.01 and n = 36, so the EMI is about ₹16,607.

EMI on a ₹10,00,000 business loan at an illustrative 18% p.a.

Tenure	Monthly EMI	Total interest	Total payable
12 months	₹91,680	₹1,00,160	₹11,00,160
24 months	₹49,924	₹1,98,178	₹11,98,178
36 months	₹36,152	₹3,01,486	₹13,01,486
48 months	₹29,375	₹4,10,000	₹14,10,000
60 months	₹25,393	₹5,23,606	₹15,23,606

Monthly EMI or daily repayment?

Some lenders offer small merchants daily repayment (EDI) instead of a monthly EMI, collected from daily sales or UPI receipts. Daily repayment can suit shops with steady daily takings, but compare the total amount payable and the APR — not just the daily amount — before choosing.

Read our guide on monthly versus daily loan repayments for a worked comparison.

Frequently asked questions

Is the EMI shown here exactly what my lender will charge?

It is very close for a standard reducing-balance loan. Your actual EMI can differ slightly because of the disbursement date, broken-period interest for the first month and rounding. The exact EMI and repayment schedule are in the lender's Key Fact Statement.

Does the EMI include processing fees and GST?

No. Processing fees, documentation charges and GST on them are usually deducted from the loan amount at disbursal or paid upfront, so they do not change the EMI. They do raise the total cost of the loan, which is why lenders must show the annual percentage rate (APR) in the Key Fact Statement.

How can I reduce my EMI?

Choose a longer tenure, borrow a smaller amount or get a lower interest rate. A longer tenure lowers the EMI but increases the total interest you pay, so pick the shortest tenure whose EMI fits comfortably in your monthly budget.

What happens if I prepay part of the loan?

A part-prepayment reduces your outstanding principal. Lenders then either reduce your EMI or shorten the tenure. RBI does not allow foreclosure or prepayment charges on floating-rate loans to individuals for non-business purposes; fixed-rate loans may carry a charge set out in your loan agreement.

Guides

Business & MSME Loans