Business loan calculators: EMI, eligibility, DSCR and more

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Which calculator do I need?

Start from the question you have. Each calculator shows its formula and a worked example in plain text, so you can check it by hand.

Which calculator answers which question, and what each needs from you
Your question	Calculator	What you need
What will my monthly instalment be?	Business loan EMI calculator	Amount, rate, tenure
How much can my business borrow?	Business loan eligibility calculator	Profit, depreciation, existing EMIs or monthly income
Can my profits cover my loan payments?	DSCR calculator	Profit, depreciation, interest, principal due
How much working capital do I need, and what limit might a lender set?	Working capital calculator	Stock, receivables, creditors, sales
What is the EMI on a Mudra or PMEGP loan, with the subsidy?	Mudra and PMEGP EMI calculator	Amount or project cost, category, area
What does a CGTMSE-backed loan really cost?	MSME loan EMI with the CGTMSE fee	Amount, rate, tenure, moratorium
How much can I borrow on my GST turnover?	GST business loan eligibility calculator	GST turnover, margin, existing EMIs
How much do I need to sell before I make a profit?	Break-even calculator	Fixed costs, price, variable cost per unit
What EMI and loan amount can my property support?	Loan against property EMI calculator	Property value, LTV, rate, tenure
What will the CGTMSE guarantee fee be on my loan?	CGTMSE fee calculator	Loan amount, category, location
How much PMEGP margin money subsidy can I get?	PMEGP subsidy calculator	Project cost, category, area
How much do I save by prepaying or closing my loan early?	Business loan prepayment calculator	Outstanding, rate, months left, prepayment, charge
Is a flat rate offer cheaper than it looks?	Flat vs reducing rate calculator	Amount, flat rate, tenure
How much of my cash credit limit can I draw?	Drawing power calculator	Stock, debtors, creditors, margins

The calculators

Fourteen calculators for a business loan

Business loan EMI calculator

Your monthly EMI, total interest, flat versus reducing rate and the effect of a fee.

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

Business loan eligibility calculator

An indicative loan amount from your accounts or your income, the way lenders usually work it out.

cash for debt service ÷ DSCR − existing EMIs

DSCR calculator

Your debt service coverage ratio for one year or across a loan, as the RBI words it.

(cash accruals + interest) ÷ (principal due + interest)

Working capital calculator

Net working capital, the current ratio, the cycle in days, and the limit by the turnover method.

current assets − current liabilities

Mudra and PMEGP EMI calculator

The EMI on a Mudra loan, or on a PMEGP loan with its own contribution and subsidy.

bank loan = project cost × (1 − own contribution)

MSME loan EMI with the CGTMSE fee

The EMI plus the CGTMSE guarantee fee and a moratorium, with the APR including fees.

EMI + annual guarantee fee, with a moratorium

GST business loan eligibility calculator

A working capital limit by the turnover method and an indicative term loan from your GST sales.

working capital ≥ 20% of projected turnover

Break-even calculator

Your break-even units and sales, contribution margin and margin of safety.

break-even units = fixed costs ÷ (price − variable cost)

Loan against property EMI calculator

The loan your property supports at the LTV you enter, and its EMI and total interest.

loan = property value × LTV

CGTMSE fee calculator

The annual guarantee fee by slab, with the concessions the scheme allows.

annual fee = outstanding × slab rate

PMEGP subsidy calculator

Your own contribution, the subsidy and the bank loan for a PMEGP project.

subsidy = project cost × subsidy rate

Business loan prepayment calculator

Interest saved, the new EMI or tenure, and the net saving after the prepayment charge.

saving = interest avoided − prepayment charge

Flat vs reducing rate calculator

The reducing rate and APR that a flat rate really costs, side by side.

flat interest = P × flat rate × years

Drawing power calculator

Your drawing power against stock and book debts, after the lender's margins.

drawing power = (stock + debtors − creditors) × (1 − margin)

The short answer

How business loan interest is calculated

On a reducing-balance loan, each month's interest is the balance still owed × the annual rate ÷ 12. The EMI stays fixed, so the interest part falls and the principal part rises over the loan.

₹10,00,000 over 36 months at an example 14% a year: month 1 interest is ₹10,00,000 × 14% ÷ 12 = ₹11,667. The EMI is ₹34,178. Total interest over the loan is ₹2,30,395.
A flat rate charges interest on the full amount for the whole tenure: ₹10,00,000 × 14% × 3 = ₹4,20,000. That is why a flat 14% costs about the same as 24.40% on a reducing balance.
The annual percentage rate, or APR, is the annual cost of credit including the interest rate and all other charges. A processing fee raises it above the interest rate.
See every step for this example in the business loan EMI calculator.

Sources: the standard EMI formula, a mathematical identity, and the RBI's Key Facts Statement circular of 15-Apr-2024 for the APR, checked 02-Oct-2026.

Method

How these calculators work

Every calculator shows its formula and a worked example in plain text before you use it. Rates are examples, or one lender's published rate with its date. Lenders decide the rate, the amount and the approval. Capnix is not a lender.

The calculators run in your browser and make no credit enquiry. They ask for no name, phone number or PAN. Like every page on this site, they use the analytics described in our Privacy Policy and Cookie policy.

Good to know

Questions and answers

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

How is interest on a business loan calculated?

On a reducing-balance loan, each month's interest is the balance still owed × the annual rate ÷ 12. The EMI stays fixed, so the interest part falls and the principal part rises over the loan. On ₹10,00,000 at an example 14% a year, month 1 interest is ₹11,667 and the EMI over 36 months is ₹34,178.

What is the difference between a flat rate and a 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. On ₹10,00,000 for 3 years, a flat 14% costs ₹4,20,000 of interest, against ₹2,30,395 on a reducing 14%. The business loan EMI calculator compares the two in a table.

Which calculator should I use to see how much loan I can get?

Use the business loan eligibility calculator. It works out an indicative amount from your accounts or from your monthly income, the way lenders usually do. For a fuller read of your business, the free readiness check looks at more than a few numbers. Lenders decide the actual amount.

Is a simple interest EMI the same as a flat rate EMI?

Both charge interest on the original amount for the whole tenure, so a simple interest EMI and a flat rate EMI are worked out the same way. A reducing-balance EMI charges interest only on what is still owed, and costs less at the same stated rate. The business loan EMI calculator shows the difference.

What is APR and why is it higher than the interest rate?

The APR, or annual percentage rate, is, in the RBI's words, the annual cost of credit to the borrower, which includes the interest rate and all other charges. It is higher than the interest rate when there are fees, such as a processing fee. Every new retail and MSME term loan sanctioned on or after 01-Oct-2024 must come with a Key Facts Statement that shows it.

Are the rates in these calculators offers?

No. The rates are example inputs, or one lender's published rate with its date. Lenders decide the rate, the amount and the approval, and Capnix is not a lender.

Do these calculators check my CIBIL score?

No. They make no credit enquiry and ask for no name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Like every page on this site, they use the analytics described in our Privacy Policy and Cookie policy.

How do I know how much my business can afford to repay?

For a business with accounts, the DSCR calculator compares your cash accruals with your debt payments. For a proprietor assessed on income, the income mode of the eligibility calculator compares monthly income with fixed payments. Lenders decide how much a business can repay, and each uses its own limits.

Keep going

More calculators

Sources

How to read these figures

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

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.
Every calculator page lists its own sources, formulas and a worked example you can check by hand.

Last checked: 02-Oct-2026.