Business Loan EMI Calculator
Calculate the monthly instalment on a business loan, the total interest you will pay, and how the balance falls each year.
Your numbers
- Total payment
- ₹10.66 L
- Interest as % of loan
- 6.62%
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Get matched with Fund Force →Amortisation by year
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹10 L | ₹66,185 | ₹0 |
The formula, in plain English
- EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- r = annual rate ÷ 12, n = months
- Interest portion = Balance × r; Principal portion = EMI − Interest
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly interest rate and n the number of months. Early EMIs are mostly interest; later ones mostly principal.
Does a longer tenure reduce cost?
It lowers the EMI but increases total interest paid. Pick the shortest tenure whose EMI your cash flow can comfortably cover.
Should a startup take a loan?
Only if you can service it from existing cash flow with at least 1.5× coverage. Unproven, risky bets are better funded with equity.
Results are estimates for planning and education — not financial, legal or tax advice.