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FreeEMI & AMORTIZATION

Business Loan & EMI Calculator

Calculate monthly payouts, interest liabilities, and detailed amortization sheets for Indian business loans.

100% client-side. Nothing you type is uploaded or stored on a server.

How to use

  1. 1Enter the loan amount, interest rate and tenure (or pick a preset).
  2. 2Add the processing fee to see the true cost.
  3. 3Review the yearly or monthly amortization table and download it as CSV.

A loan quote tells you the rate; the EMI tells you what leaves your account every month; the amortisation table tells you the truth — that in year one of a ₹20 lakh loan at 11%, roughly 70% of each EMI is interest. This calculator computes the EMI for business, home, vehicle and personal loans with the reducing-balance method Indian banks and NBFCs use, adds the processing fee to show the true cost, and produces a month-by-month or year-by-year amortisation schedule you can download as CSV.

The formula

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is principal, r the monthly rate (annual ÷ 12), n the number of months. For ₹20,00,000 at 11% over 60 months: r = 0.9167%, EMI ≈ ₹43,485, total interest ≈ ₹6.09 lakh. Each EMI's interest = outstanding principal × r; the rest reduces principal — which is why prepaying early saves most. The mechanics and four ways to pay less are in How EMI is calculated.

How to use the calculator

  1. Enter the loan amount, annual interest rate and tenure (months or years), or pick a preset — MSME term loan, Mudra, vehicle, home.
  2. Add the processing fee (typically 0.5–2% plus GST) to see the effective annual cost, which is what you should compare across lenders.
  3. Read the EMI, total interest and total payment.
  4. Open the amortisation table (monthly or yearly), see how principal and interest split over time, and download CSV for your books.
  5. Test scenarios: a shorter tenure, a lower rate after negotiation, or a lump-sum prepayment.

Business loans in 2026

Small businesses have more options than the bank branch suggests: Mudra (Shishu up to ₹50,000, Kishore to ₹5 lakh, Tarun to ₹10 lakh, Tarun Plus to ₹20 lakh), PMEGP with subsidy, CGTMSE-guaranteed loans without collateral up to ₹10 crore, and Stand-Up India for SC/ST and women entrepreneurs. Rates run from about 9% for secured bank loans to 18–24% for fintech working-capital lines. The eligibility and cost comparison is in MSME loan schemes in 2026. Registering on Udyam also unlocks the MSMED Act protections described in The new MSME definition.

Flat rate vs reducing balance

A "12% flat" loan charges interest on the original principal for the whole tenure — equivalent to roughly 21–22% reducing on a 3-year loan. Dealers and some NBFCs quote flat rates because they look small. Always convert: this calculator's reducing-balance EMI at the flat lender's EMI tells you the true rate. If a quote gives only the EMI and tenure, use the "find the rate" option.

Managing the loan

  • Prepayment: floating-rate loans to individuals carry no prepayment penalty per RBI rules; business term loans may. Prepaying ₹1 lakh in month 12 of the example above saves about ₹35,000 of interest.
  • Tenure vs EMI: after a prepayment or rate cut, most lenders keep the EMI and cut the tenure — the cheaper choice.
  • Interest deduction: business-loan interest is a deductible expense; keep the sanction letter and the bank's interest certificate for the income tax computation.
  • Late payments hit your CIBIL and attract penal charges; compare with what suppliers would charge you using the late payment interest calculator.
  • Whether the loan pays for itself is a return question: check the project with the ROI calculator.

Frequently asked questions

Is the EMI the same every month?

Yes, for a fixed-rate reducing-balance loan. The interest portion falls and the principal portion rises each month, but the total stays constant. Floating-rate loans change EMI or tenure when the rate resets.

What is the difference between flat and reducing interest?

Flat interest is charged on the original principal throughout; reducing-balance interest is charged only on what is outstanding. A 12% flat rate is close to 21–22% reducing over three years.

Does the processing fee change the EMI?

No, but it raises the effective cost. The calculator shows the effective annual rate including the fee so you can compare lenders honestly.

Is business loan interest tax-deductible?

Yes, interest on loans taken for business is deductible as an expense. The principal repayment is not.

How does prepayment reduce interest?

Interest is charged on the outstanding balance, so cutting the balance early removes interest for every remaining month. The earlier the prepayment, the larger the saving.