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Business loan EMI calculator

For any business loan: set the amount, interest rate and tenure to see your monthly EMI, total interest and total repayment. The calculator makes no credit enquiry and asks for no name, phone number or PAN.

A business owner working out his monthly instalment on a calculator at his desk

Capnix is not a lender. Rates, amounts and approvals are decided by lenders. Rates shown here are examples, not offers.

Last checked
02-Oct-2026
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Move the sliders,
see your EMI

The EMI is the fixed amount repaid each month. It equals the loan amount, the rate and the tenure worked through one formula. Set all three, and add a processing fee if your lender charges one.

₹
% a year
years (36 months)
% of the loan
Estimated EMI ₹85,444
Total repayment ₹30,75,987
Principal amount
₹25,00,000
Total interest
₹5,75,987

Illustrative estimate, not a loan offer. Your actual EMI is set by the lender that sanctions your loan.

At 13% instead, this same loan would cost ₹43,531 less. A sharper rate is the real saving. Whether a lender prices you there depends on your file, and checking that with the lenders on our panel is what Capnix does, free for your business.

Year Principal repaid Interest paid How the year's EMIs split Principal Interest Balance left
1 ₹7,20,393 ₹3,04,936
₹17,79,607
2 ₹8,27,978 ₹1,97,351
₹9,51,630
3 ₹9,51,630 ₹73,699
₹0

In year one, ₹3,04,936 of your instalments is interest. In the final year it is just ₹73,699. That is why a prepayment made early in the loan saves far more interest than the same prepayment made later.

Quoted a flat rate? This loan at 14% reducing costs about the same as 7.7% flat a year. A flat quote always sounds cheaper than it really is, so compare both on the reducing basis before you sign.

How it is calculated

How business loan
EMI is calculated

Your EMI is the fixed monthly amount that fully repays a loan, principal plus interest, over the chosen tenure. It is set by three things: how much you borrow, the annual interest rate, and how many months you take to repay.

The standard formula

EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)

P is the principal, r is the monthly interest rate (the annual rate divided by 12 and by 100), and n is the tenure in months. This calculator applies exactly this formula, the standard formula for a reducing-balance loan. Each month, interest is the balance still owed times r. The rest of the EMI repays principal, so the balance falls and the interest part shrinks.

What changes your EMI

  • A higher loan amount lifts your EMI in direct proportion.
  • A higher interest rate raises both your EMI and your total interest.
  • A longer tenure eases your EMI but adds to the total interest.
  • The biggest saving is a sharper rate, and Capnix compares lenders to find it, free for your business.
Worked example

Worked example: ₹10,00,000 over 36 months

This example uses an illustrative 14% a year on a reducing balance. It shows the formula at work. It is not a quote.

StepWorkingResult
Monthly rate r14 ÷ 12 ÷ 1000.011667
Growth factor (1 + r)36(1 + 0.011667)361.518266
EMI₹10,00,000 × r × 1.518266 ÷ (1.518266 − 1)₹34,178
Total repaymentEMI × 36, using the unrounded EMI₹12,30,395
Total interestTotal repayment − ₹10,00,000₹2,30,395

Year by year

YearPrincipal repaidInterest paidBalance left
1₹2,88,157₹1,21,974₹7,11,843
2₹3,31,191₹78,940₹3,80,652
3₹3,80,652₹29,480₹0
Show all 36 monthly rows
MonthEMIInterestPrincipalBalance left
1₹34,178₹11,667₹22,511₹9,77,489
2₹34,178₹11,404₹22,774₹9,54,715
3₹34,178₹11,138₹23,039₹9,31,676
4₹34,178₹10,870₹23,308₹9,08,368
5₹34,178₹10,598₹23,580₹8,84,788
6₹34,178₹10,323₹23,855₹8,60,933
7₹34,178₹10,044₹24,133₹8,36,800
8₹34,178₹9,763₹24,415₹8,12,385
9₹34,178₹9,478₹24,700₹7,87,685
10₹34,178₹9,190₹24,988₹7,62,697
11₹34,178₹8,898₹25,280₹7,37,417
12₹34,178₹8,603₹25,574₹7,11,843
13₹34,178₹8,305₹25,873₹6,85,970
14₹34,178₹8,003₹26,175₹6,59,795
15₹34,178₹7,698₹26,480₹6,33,315
16₹34,178₹7,389₹26,789₹6,06,526
17₹34,178₹7,076₹27,101₹5,79,425
18₹34,178₹6,760₹27,418₹5,52,007
19₹34,178₹6,440₹27,738₹5,24,270
20₹34,178₹6,116₹28,061₹4,96,209
21₹34,178₹5,789₹28,389₹4,67,820
22₹34,178₹5,458₹28,720₹4,39,100
23₹34,178₹5,123₹29,055₹4,10,046
24₹34,178₹4,784₹29,394₹3,80,652
25₹34,178₹4,441₹29,737₹3,50,915
26₹34,178₹4,094₹30,084₹3,20,832
27₹34,178₹3,743₹30,435₹2,90,397
28₹34,178₹3,388₹30,790₹2,59,607
29₹34,178₹3,029₹31,149₹2,28,458
30₹34,178₹2,665₹31,512₹1,96,946
31₹34,178₹2,298₹31,880₹1,65,066
32₹34,178₹1,926₹32,252₹1,32,814
33₹34,178₹1,550₹32,628₹1,00,186
34₹34,178₹1,169₹33,009₹67,177
35₹34,178₹784₹33,394₹33,783
36₹34,178₹394₹33,783₹0

Each row is rounded to the rupee, so the columns may not add to the exact rupee. The last row clears the balance to ₹0.

Compare the two

Flat rate versus reducing rate

A flat rate charges interest on the full amount for the whole tenure. A reducing rate charges it only on the balance still owed. The same number on the label costs very different amounts.

Reducing 14%Flat 14%
How interest is chargedOn the balance still owed each monthOn the full ₹10,00,000 for all 3 years
Total interest₹2,30,395₹4,20,000
EMI₹34,178₹39,444
Equivalent rate on the other basis7.68% flatabout 24.40% reducing

The flat EMI is the amount plus flat interest, divided by 36 months. When a lender quotes a flat rate, convert it to a reducing rate before you compare it with another quote.

Beyond the interest rate

What the processing fee does to the real cost

A fee paid up front means the business receives less than the loan amount but still repays the full EMI. The annual percentage rate, or APR, puts that on one yearly number. The RBI describes it as the annual cost of credit that includes the interest rate and all other charges.

LineFigure
Processing fee at 2% of the loan₹20,000
Amount that reaches the business₹9,80,000
EMI, unchanged₹34,178
Interest rate stated14% a year
APR including the fee15.43% a year

The APR here is the monthly rate at which the amount received equals the present value of the EMIs, multiplied by 12. A lender's own figure may be annualised differently, so the Key Facts Statement is the figure to trust.

  • One lender's published schedule shows a processing fee of up to 2% of the loan plus taxes as applicable. It shows none on loans up to ₹5,00,000 to micro and small enterprises that submit a Udyam certificate before disbursal. That is one lender, not a market rate.
  • For MSME term loans sanctioned on or after 01-Oct-2024, the lender must give a Key Facts Statement that shows the APR. A fee that is not in it cannot be charged without your explicit consent.
  • Fees differ by lender, so the fee box above starts at 0. See the true cost of a business loan for the other charges to ask about.
Reference table

EMI by loan amount and tenure

A quick look at what a business loan from ₹5,00,000 to ₹1,00,00,000 costs per month over three, five and seven years at an illustrative 14% a year on a reducing balance. Actual EMI may vary by lender and business profile.

Loan amount EMI over 3 years EMI over 5 years EMI over 7 years
₹5,00,000 ₹17,089 ₹11,634 ₹9,370
₹10,00,000 ₹34,178 ₹23,268 ₹18,740
₹15,00,000 ₹51,266 ₹34,902 ₹28,110
₹20,00,000 ₹68,355 ₹46,537 ₹37,480
₹25,00,000 ₹85,444 ₹58,171 ₹46,850
₹40,00,000 ₹1,36,711 ₹93,073 ₹74,960
₹50,00,000 ₹1,70,888 ₹1,16,341 ₹93,700
₹1,00,00,000 ₹3,41,776 ₹2,32,683 ₹1,87,400

Illustrative at 14% a year, reducing balance. Not a loan offer or an indication of the rate you will be sanctioned. The rate, amount and tenure a lender actually sets depend on your business, and only the lender decides them.

Sources

How to read these figures

  • EMI formula: the standard annuity formula, a mathematical identity. No regulator page states it.
  • APR and Key Facts Statement: RBI circular on Key Facts Statement for loans and advances, 15-Apr-2024 (RBI/2024-25/18), checked 02-Oct-2026.
  • Prepayment charges: RBI directions on pre-payment charges on loans, 02-Jul-2025 (RBI/2025-26/64), for loans sanctioned or renewed from 01-Jan-2026.
  • Processing fee example: one lender's published fees and charges page for business loans (Kotak Mahindra Bank), checked 02-Oct-2026. One lender, not a market rate.
Know the limits

Limits of this calculator

  • It works out a fixed-rate reducing-balance loan. A floating rate that changes during the loan, part-payments and a moratorium are not modelled here. The MSME loan EMI calculator covers a moratorium.
  • It includes the one fee you enter. Insurance, penal charges and other lender charges are not included.
  • It uses your inputs only. It does not look at your credit history, your accounts or your lender's policy.
  • Figures are rounded to the rupee for display. The calculation runs at full precision.
  • Sizing an EMI for a particular loan? See term loans, equipment financing and commercial vehicle loans. With a number in hand, compare offers from our lender panel.

More calculators

Good to know

Questions and answers

Straight answers on the method, the sources and what the numbers do and do not mean.

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the monthly interest rate (the annual rate divided by 12 and by 100) and n is the number of months. Each month's interest is the balance still owed times r, and the rest of the EMI repays principal. The worked example above shows every step for ₹10,00,000 over 36 months.
At an illustrative 14% a year on a reducing balance, the EMI is about ₹34,178 a month, and the total interest is about ₹2,30,395. This is an example of the formula, not a quote. Your lender sets the rate, so use the calculator with your own numbers.
At the same illustrative 14% a year, the EMI is about ₹23,268 a month, and the total interest is about ₹3,96,095. A longer tenure lowers the EMI but raises the total interest. Your lender sets the actual rate.
Over five years at an illustrative 14% a year, the EMI is about ₹2,32,683 a month. At this size, a small difference in the rate a lender offers moves the EMI by a meaningful amount, so it is worth comparing lenders before you commit.
A flat rate charges interest on the full amount for the whole tenure. On ₹10,00,000 at 14% for 3 years that is ₹4,20,000 of interest. A reducing rate charges interest only on the balance still owed, so the same 14% costs ₹2,30,395. A flat 14% costs about the same as 24.40% on a reducing balance. Compare quotes on the reducing basis.
A processing fee is paid up front, so the business receives less than the loan amount but still repays the full EMI. On ₹10,00,000 at 14% over 36 months, a 2% fee is ₹20,000. The business receives ₹9,80,000, the EMI stays ₹34,178, and the loan costs about 15.43% a year against 14% stated. One lender's published schedule adds taxes as applicable on top of the fee, which raises the cost further, so ask for the full figure in writing.
The APR, or annual percentage rate, is "the annual cost of credit to the borrower which includes interest rate and all other charges associated with the credit facility", in the RBI's words. Every new retail and MSME term loan sanctioned on or after 01-Oct-2024 must come with a Key Facts Statement that shows it. The RBI also says a fee not in that statement cannot be charged without the borrower's explicit consent.
It depends on the loan and the lender. For floating-rate business loans to individuals and micro and small enterprises sanctioned or renewed on or after 01-Jan-2026, the RBI says most banks and larger NBFCs (non-banking finance companies) may not charge for prepayment. Small finance banks, regional rural banks, some co-operative banks and middle-layer NBFCs may not charge on loans up to ₹50,00,000. Fixed-rate loans may differ, so read the sanction letter and the Key Facts Statement.
A lot. On ₹10,00,000 at an illustrative 14% a year, the EMI is about ₹34,178 over three years, ₹23,268 over five years and ₹18,740 over seven years. A longer tenure lowers the monthly instalment but raises the total interest, which is why the reference table below shows several tenures side by side.
Use your lender's quote if you have one. If not, try a few rates and see how much your EMI moves. Rates are set by lenders and differ with the lender, the product and your business. The 14% filled in here is an example, not an offer.
No. The calculator makes no credit enquiry, and it does not ask for your name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Like every page on this site, this calculator uses the analytics described in our Privacy Policy and Cookie policy.
Treat it as a close estimate. Your final EMI depends on the amount, rate and tenure the lender sanctions, plus any fees the lender charges. The lender's Key Facts Statement is the figure to trust.
A lower rate or a longer tenure reduces the monthly instalment, though a longer tenure usually means more total interest. Comparing lenders matters most, and that is what Capnix does, free for your business.

A calculator gives you a number. Only a lender gives you a decision. We take your file to the lenders on our panel most likely to back it and stay on it until disbursal. Getting your loan costs you nothing.

Know your EMI. Now check if lenders will back it.

Illustrative only. Your final amount, rate, tenure and any lender fees are set by the lender that sanctions your loan.

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