Business loan EMI calculator
Size a loan to your cash flow. Enter the amount, rate and tenure for your monthly EMI, total interest and schedule — and remember the interest is a tax-deductible business expense.
Loan details
Tweak the numbers - results update live
₹20L
Principal
amount borrowed
₹9.18L
Total interest
over the tenure
₹29.18L
Total payable
principal + interest
Principal vs interest
What you repay over 5 years
- Principal₹20L
- Interest₹9.18L
Year-by-year schedule
How the balance falls as you repay
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹2,83,851 | ₹2,99,781 | ₹17,16,149 |
| 2 | ₹3,32,750 | ₹2,50,882 | ₹13,83,400 |
| 3 | ₹3,90,073 | ₹1,93,559 | ₹9,93,327 |
| 4 | ₹4,57,271 | ₹1,26,361 | ₹5,36,056 |
| 5 | ₹5,36,056 | ₹47,587 | ₹0 |
Monthly EMI
₹48,636
Fuel for growth
Borrow to earn more than it costs
A business loan works when the return on what you fund beats the interest you pay. Keep the tenure aligned to the payback of the investment, and use the tax-deductibility of interest to lower the real cost.
- 1
Match loan to purpose
Term loan for one-time needs; a credit line for fluctuating ones.
- 2
Price in the rate
Unsecured business rates are high — make the investment outrun them.
- 3
Deduct the interest
Loan interest is a business expense that cuts your taxable profit.
- 4
Repay on cash flow
Pick a tenure and EMI your monthly cash flow comfortably covers.
Questions
Frequently asked
Business loan EMI uses the reducing-balance formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Most business term loans are unsecured and short-to-medium tenure (1–5 years), so rates are higher than secured loans and the EMI is sized to your cash flow rather than a long horizon.
Unsecured business loan rates in India typically range from about 11% to 26%, driven by your business vintage, turnover, credit profile and the lender. Secured business loans and government-backed schemes (like MUDRA or CGTMSE-backed loans) can be cheaper. Enter your offered rate above.
Yes. Interest paid on a loan taken for business purposes is an allowable business expense and is deductible from your business income, reducing your taxable profit. The principal repayment is not deductible. Keep clean records linking the loan to business use.
A term loan with fixed EMIs (what this calculator models) suits one-time needs like equipment or expansion. A working-capital line or overdraft, where you pay interest only on what you draw, suits fluctuating day-to-day needs. Match the product to the purpose to avoid paying interest on idle funds.
Borrow only what you need, negotiate the rate using your turnover and credit history, choose a tenure your cash flow can sustain, and consider a secured or government-backed loan for a lower rate. Prepaying when you have surplus also cuts total interest — check the foreclosure terms first.