EMI Calculator for Business Loans
Enter your loan amount, annual interest rate, and tenure in months to see your monthly EMI, total interest, and total repayment instantly — plus a full amortization schedule you can expand to see exactly how each payment splits between principal and interest.
Results and any AI-generated content from this tool are provided free, "as is", for general informational purposes only and may be inaccurate, incomplete, or out of date. Always verify the output yourself before relying on it — you use this tool and its results at your own risk.
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How EMI is calculated
EMI (Equated Monthly Instalment) is the fixed amount you pay every month
toward a loan, combining both principal and interest, so that the loan is
fully repaid by the end of its tenure. The formula is
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1),
where P is the loan principal, r is the monthly
interest rate (annual rate ÷ 1200 — dividing by 100 to convert percent to a
decimal, and by 12 to go from annual to monthly), and n is the
number of monthly instalments. Each month's payment is split between
interest (charged on the remaining balance) and principal (which reduces
that balance) — early payments are mostly interest, later payments are
mostly principal, which is exactly what the expandable amortization
schedule above shows.
Worked examples
Example 1 — matches a typical bank EMI table: a ₹1,00,000 loan at 12% annual interest over 12 months. Monthly rate r = 12 ÷ 1200 = 0.01. EMI = 1,00,000 × 0.01 × (1.01)²/((1.01)² − 1) ≈ ₹8,884.88 (banks typically round this to ₹8,885). Total repayment over 12 months ≈ ₹1,06,618.60, meaning total interest paid ≈ ₹6,618.60.
Example 2 — a larger business loan: a ₹5,00,000 loan at 10% annual interest over 24 months. r = 10 ÷ 1200 ≈ 0.008333. EMI ≈ ₹23,072.46 per month, for a total repayment of ≈ ₹5,53,739.12 and total interest of ≈ ₹53,739.12 over the two years.
Reading the amortization schedule
Click "Show Amortization Schedule" to see every month's split between principal and interest, and the remaining loan balance after each payment. The balance always reaches exactly ₹0 after the final instalment — this calculator computes each month's interest on the actual remaining balance, then closes the final month's principal out exactly, so there's never a stray paisa left over from rounding, just as a real bank's closing statement would show.
What about a 0% interest loan?
If the annual rate is 0%, the standard EMI formula's denominator becomes zero — this calculator detects that case and simply divides the principal evenly across the tenure (EMI = principal ÷ months) instead, which is mathematically what a 0%-interest EMI actually is.
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Frequently Asked Questions
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 1200), and n is the number of months. For a ₹1,00,000 loan at 12% annual interest over 12 months, EMI ≈ ₹8,884.88.
Divide the annual percentage rate by 1200 — dividing by 100 converts percent to a decimal, and by 12 converts an annual rate to a monthly one. A 12% annual rate becomes a 0.01 (1%) monthly rate.
Interest is calculated on the remaining loan balance each month, which is highest at the start. As the balance shrinks with each payment, the interest portion shrinks too and the principal portion grows — even though the total EMI stays the same every month.
Yes. The final month's principal is calculated to close out whatever balance remains exactly, rather than using the regular EMI's principal split — this absorbs any rounding so the schedule never shows a stray paisa left over.
The standard EMI formula divides by zero when the rate is 0%, so this calculator instead simply divides the loan amount evenly across the number of months (EMI = principal ÷ tenure).
