Business loan EMI calculator
Year-by-year repayment
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Using this calculator to compare loan offers
Two offers with the same interest rate can cost very different amounts once fees are included. Compare the total cost (interest + processing fee) rather than the rate alone, and ask each lender about prepayment or foreclosure charges — floating-rate loans to individuals generally can’t carry foreclosure charges, but many business loans do.
Want to know how RBI rate decisions feed into your loan? Read How the RBI repo rate reaches your EMI.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This calculator uses that reducing-balance formula.
Why does most of my early EMI go towards interest?
Interest is charged on the outstanding balance, which is highest at the start. As you repay principal, the interest portion shrinks and more of each EMI reduces the loan.
Does the processing fee change my EMI?
Usually not — it is typically deducted from the amount disbursed or paid upfront, but it raises your true cost of borrowing. We show it separately so you can compare offers fairly. GST is usually charged on processing fees as well.
Results are estimates using the standard reducing-balance method. Your lender’s schedule may differ slightly due to rounding, broken-period interest or fees. Not financial advice.