Business financeCalculator
Business Loan EMI Calculator
Work out the monthly instalment, the total interest and the total repayment of a loan from its amount, interest rate and tenure.
Enter the loan amount, the interest rate and the tenure to see the EMI.
How it is calculated
- The interest rate is a yearly rate on the balance that is still owed, so the monthly rate is the yearly rate ÷ 12.
- EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly rate and n the number of months.
- Total repayment = EMI × n, and total interest = total repayment − the loan.
Example. A loan of ₹10,00,000 at 9% a year for 20 years (240 months) has an EMI of ₹8,997.26, so ₹21,59,342.40 is repaid and ₹11,59,342.40 of it is interest.
Before you rely on it
This is an illustrative calculation for general guidance, not professional advice. Rates and limits change by notification, so confirm the applicable law before you rely on a figure.
Frequently asked questions
How is EMI calculated?
With the standard reducing-balance formula: the loan, the monthly interest rate and the number of months give one equal instalment that repays the loan and its interest by the last month.
Does my lender charge anything else?
Probably. Processing fees, insurance, part-payment and late-payment charges are not included, and lenders can round the instalment differently. Your sanction letter has the exact figures.
What happens to the EMI if the rate or tenure changes?
A higher rate makes the instalment larger. A longer tenure makes it smaller but increases the total interest you pay.