A Business Loan calculator is a customised tool available on various Business Loan lenders’ websites that allows you to calculate your monthly debt obligation prior to submitting your loan application. This tool requires three variables to be entered: principal loan amount, interest rate, and the repayment period.
Following the input of these values, the calculator will display the resulting EMI value in a second. You can experiment with different loan amounts and repayment periods to determine the EMI that best fits your needs and budget.
You can easily calculate your business loan EMI using a loan EMI calculator or manually using the mathematical formula detailed below.
EMI = P × R × [(1+R)^N / (1+R)^(N-1)]
where,
EMI refers to the equated monthly instalment amount
P means principal loan amount
R means the rate of interest
N is the loan tenure in months
The EMI calculator for a small business loan can assist you in many ways. Here are some of its prominent benefits:
An EMI calculator for a business loan can help you plan your finances more effectively. It provides you with the exact value of the amount you must pay each month to the lender as EMI. Therefore, using this tool, you can reduce unnecessary expenses and ensure timely payments of your EMIs.
The business loan EMI calculator is a customised tool that allows you to calculate EMI even before applying for a loan. You can use various combinations of variables to determine the amount that best suits your budget.
The results of manual calculations are prone to errors. However, when you use a business loan EMI calculator, the results are error-free and take only a few seconds to calculate.
The EMI calculator allows you to make a quick comparison between the maximum repayment period, loan amount, and interest rate offered by various lenders. This will assist you in selecting the best loan offer that meets your needs and budget.
To calculate the EMI, a Business Loan EMI calculator needs three details: the principal loan amount, interest rate, and loan tenure (repayment period).
In the Business Loan EMI calculator, input the loan amount in the first box.
In the second box, enter the interest amount.
Submit the loan tenure in the third box and click ‘Calculate’.
Business Loan EMI calculator will give you your exact EMI value.
Explore the key factors influencing Business Loan EMI in India, and utilize the Business Loan calculator in India for accurate calculations.
To lower your EMIs follow these tips
Financial institutions typically charge a fixed interest rate on a business loan, so the EMI remains constant throughout the loan term. However, if your lender offers this loan at a floating rate or you choose to reschedule the repayment terms, the EMI will change.