Business Loan EMI Calculator
A Business Loan is an easy way to grow your business and increase your revenue. Use the Business Loan Calculator to know how much your EMI will be.
A business loan is a simplified way to grow your business and increase your revenue. With a business loan calculator, one can able to calculate the EMI that they will be paying throughout the tenure period.
A Business Loan EMI Calculator is an online tool that enables individuals to access a calculator to calculate EMI before availing for business loans or any loans.
To calculate your business loan EMI, individuals can access the online EMI calculator by filling in basic loan details such as loan amount, repayment tenure and rate of interest.
EMI calculators are calculated automatically based on the details shared by individuals. This provides an approximate estimate of EMI payable.
However, the exact EMI shall be defined by the lender at the time of loan approval.
Benefits of accessing the EMI Calculator
- This helps in saving time and planning for loan efficiently
- Gives a clear picture of a detailed overview of the loan through an amortization schedule
- Aids to plan finance for the future in a better way
- You will be offered varied options to choose multiple schedules and EMI installment repayment based on requirements
How does Business Loan EMI Calculator work?
A business loan calculator helps you to know monthly installments you require to pay. It aids you to plan your repayment schedule wisely.
Enter the details on EMI calculator portion:
- Principal (Borrowed Loan Amount)
- Interest Rate
- Loan Repayment Tenure
The calculators use the following formula:
E = P x r x ( 1 + r )n / ( ( 1 + r )n - 1 )
Where
- E stands for EMI
- P stands for the principal or loan amount
- R stands for the Rate of Interest
- N stands for tenure
For example, let’s stay you are availing a Business Loan for 10 lakh at 15% p.a interest for a 5-year repayment period.
The EMI you shall pay is – 2,37,899
Interest Payable - 42,73,958
Amount Payable - 1,42,73,958
Below are the scheduled amortization: -
Year EMI Interest Paid Principal Paid Outstanding Balance
2022 237899.30 959481.79 943712.62 12370763.65
2023 237899.30 1251159.74 1603631.88 9515972.05
2024 237899.30 993368.66 1861422.94 6661180.45
2025 237899.30 694136.52 2160655.10 3806388.85
2026 237899.30 346801.43 2507990.17 951597.25
2027 237899.30 29009.92 922587.28 0.05
Factors that affect Business Loan EMI Calculator
Loan amount – It plays an important role in deciding loan EMIs, as much as your loan amount increases that much higher EMIs raises which means when the amount is higher, the EMI is high and when the amount is low, the EMI remains low.
Rate Interest – The interest rate determining loan EMIs shall be selected after conducting in-depth loan options offered by various banks and financial institutions. Lower interest rates might attract you but it is essential to check out for hidden charges and terms and conditions that are involved in loan offers.
Repayment Tenure – This is another important factor that affects the EMI. Typically, a longer tenure ensures lesser EMI while a shorter tenure ensures a higher amount on EMI.
