Business Loan EMI Calculator: How to Plan Your Repayments in 2025

Sonam, a 28-year-old baker from Jaipur, stood nervously outside the bank. Her dream to expand "Sonam's Sweet Secrets" needed ₹8,00,000, but the loan terms confused her. "12% interest? 4 years? How much will I pay monthly?" she wondered.

That evening, her CA friend Riya asked, "Have you checked an EMI calculator?" Sonam had not. Riya quickly input the numbers:

• Loan Amount: ₹8,00,000
• Interest Rate: 12%
• Tenure: 4 years (48 months)

The result? ₹21,247/month. Sonam gasped – it fit her budget! Riya smiled, "Now let’s tweak numbers to save more."

As Sonam scribbled calculations, her anxiety faded. The cold numbers felt like a roadmap, not a hurdle. Little did she know, this was just Step 1. The real secrets? Comparing lenders, prepayment tricks, and balancing EMIs with cupcake revenue – all waiting to be uncovered...

Like Sonam, do you know how loan tenure changes your EMI? We will explore this and more in this blog!

What Is A Business Loan EMI Calculator?

A Business Loan EMI Calculator is an online tool that helps you estimate your monthly loan instalments (EMIs). You simply enter details like loan amount, interest rate, and loan tenure, and the calculator instantly shows your monthly EMI.

By using this tool, you can compare different loan options and choose the one that best suits your financial situation. It helps you manage your cash flow better and understand how much budget you need to set aside for loan repayment every month.

In 2025, as business loan terms and interest rates may change, using an EMI calculator can help you plan your loan repayment effectively. It ensures that your monthly instalments are balanced with your income and expenses, reducing financial stress and allowing you to focus on growing your business.

Example:

Nikhil wants to take a business loan of ₹5,00,000 for 3 years at an interest rate of 12% per annum. Using an EMI calculator, he finds that his monthly EMI will be approximately ₹16,607. Over 36 months, he will repay a total of ₹5,97,852, which includes ₹97,852 as interest. This helps Nikhil plan his monthly budget effectively.

How To Use A Business Loan EMI Calculator?

• Loan Amount (P): The amount you want to borrow as a loan.
• Interest Rate (R): The annual interest rate offered by the lender.
• Loan Tenure (N): The duration for which you want to repay the loan, in months.

By entering these three values into the EMI calculator, you can find out your monthly EMI, total interest payable, and total repayment amount.

Example:

Manav, a 26-year-old from Mumbai, wants to take a business loan with the following details:

• Loan Amount (P): ₹5,00,000
• Interest Rate (R): 12% per annum
• Loan Tenure (N): 5 years (60 months)

EMI Calculation Formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

Where:

• P = Principal loan amount
• r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
• n = Loan tenure in months

Calculation:

• Monthly Interest Rate (r) = 12% ÷ 12 = 1% = 0.01

EMI = [5,00,000 × 0.01 × (1 + 0.01)^60] / [(1 + 0.01)^60 – 1] = ₹11,122.22

Manav’s Repayment Summary:

So, Manav will have to pay ₹11,122.22 every month as EMI. Over 5 years, he will pay ₹1,67,333.20 as interest, making the total repayment ₹6,67,333.20.

Through this process, Manav can plan his loan repayment in a convenient way and improve his business financial planning.

Factors To Consider

While using a Business Loan EMI Calculator, it is important to consider some key factors that can affect your EMI and total repayment.

Important Factors to Consider:

1. Loan Amount: The higher the loan amount, the higher your EMI will be. So, decide your loan amount based on your actual need.
   
   
2. Interest Rate: The Interest rate directly affects your EMI. To get a better rate, you need to maintain a good credit profile.
   
   
3. Loan Tenure: A longer tenure means lower monthly EMIs but higher total interest. A shorter tenure means higher EMIs but lower total interest.
   
   
4. Credit Score: A good credit score can help you get lower interest rates, while a low score can lead to higher interest rates.
   
   
5. Business Vintage: Lenders trust businesses that have been running for a longer time, which can influence the loan terms.
   
   
6. Annual Turnover: A Higher annual turnover makes it easier to get a loan and may help in getting better interest rates.
   
   
7. Collateral: Secured loans (with property or assets as security) usually have lower interest rates compared to unsecured loans.

Example:

Manish wants to take a business loan with the following details:

• Loan Amount: ₹10,00,000
• Interest Rate: 10% per annum
• Loan Tenure: 3 years (36 months)

Calculation:

• Monthly Interest Rate: 10% ÷ 12 = 0.833% = 0.00833

EMI = [10,00,000 × 0.00833 × (1 + 0.00833)^36] ÷ [(1 + 0.00833)^36 – 1] = ₹32,267.68

Manish’s Repayment Summary:

So, Manish will need to pay ₹32,267.68 every month as EMI. Over 3 years, he will pay ₹1,61,636.48 as interest, making the total repayment ₹11,61,636.48.

By analysing these factors and using an EMI Calculator, you can plan your business loan smartly and more effectively.

Where to Find Business Loan EMI Calculators?

You can find Business Loan EMI Calculators on various financial institutions and online platforms:

• Axis Bank: Axis Bank offers its own Business Loan EMI Calculator that helps you know the EMI, interest rates, and eligibility.

   

• HDFC Bank: HDFC Bank's Business Loan EMI Calculator allows you to calculate EMI for loan amounts between ₹50,000 and ₹15,00,000.
  
  
• Paisabazaar: This platform also provides an online EMI calculator where you can enter the loan amount, repayment tenure, and interest rate to get your EMI.
   
• IDFC FIRST Bank: IDFC FIRST Bank's Business Loan EMI Calculator is also available and calculates EMI based on loan amount, interest rate, and tenure.

Example:

Ravi wants to take a business loan with the following details:

• Loan Amount (P): ₹8,00,000
• Interest Rate (R): 11% per annum
• Loan Tenure (N): 4 years (48 months)

Calculation:

• Monthly Interest Rate (r): 11% ÷ 12 = 0.9167% = 0.009167

EMI = [8,00,000 × 0.009167 × (1 + 0.009167)^48] ÷ [(1 + 0.009167)^48 – 1] = ₹20,644.12

Ravi’s Repayment Summary:

So, Ravi will have to pay ₹20,644.12 every month as EMI. Over 4 years, he will pay ₹1,10,918.76 as interest, making the total repayment ₹9,10,918.76.

Benefits of Using the Business Loan EMI Calculator

Some of the benefits of using the EMI Calculator are as follows:

• Accurate Calculation: Manual EMI calculations can have errors, but with an EMI calculator, you can get instant and accurate EMI results, which help you plan your loan repayment better.
  
  
• Time-Saving: This tool gives instant results, so you do not need to do manual calculations, which saves your time.
  
  
• Budget Planning: Knowing your EMI helps you estimate your other business expenses and income properly, so you can take a loan based on your financial condition.
  
  
• Comparison of Loan Options: You can calculate EMIs for different loan amounts, interest rates, and tenures to find out which option is best for you.
  
  
• Future Planning: The EMI calculator gives you a complete repayment schedule, which helps you plan your future expenses and savings comfortably.
  
  
• Better Decision-Making: Knowing the correct EMI helps you decide whether to take the loan or not based on your financial condition, which protects you from unnecessary debt.

In this way, by using a Business Loan EMI Calculator, you can plan your loan in a more organised and systematic manner, which will help in the success of your business.

Interest Rates Offered by Various Banks and Non-Banking Financial Companies (NBFCs) for Business Loans

Conclusion

In 2025, using an EMI calculator while taking a business loan can make your financial planning easier and smarter. This tool gives you an accurate estimate of the EMI, total interest, and repayment amount so you can plan funding for your business without any stress.

If your credit score is good, your business turnover is stable, or you have some collateral, then you may get a loan at a lower interest rate, which means your EMI will also be lower.

With the help of an EMI calculator, you can compare loan options from different banks and 

NBFCs and choose the most suitable plan. This makes budgeting easier, and your loan instalments can be set according to your monthly income.

If you are planning to take a loan in 2025 for business expansion, new investment, or working capital, then use an EMI calculator to make the right decision. It will help you manage the loan repayment and give financial stability for the growth of your business.

FAQs

1. Is it difficult to use a Business Loan EMI Calculator?
A. No, it is very easy – just enter the loan amount, interest rate, and tenure, and the EMI will be shown instantly.

2. Is the EMI result from the calculator accurate?
A. Yes, it gives an accurate calculation based on a formula, but the final EMI may be slightly different at the time of the actual loan approval.

3. What to do if you want a lower EMI?
A. You can increase the loan tenure to reduce the EMI, but keep in mind that the total interest payable will be higher.

4. Can you calculate EMI without checking your credit score?
A. Yes, the EMI calculator does not need your credit score, but your credit score will affect the interest rate on the actual loan.

5. Do EMI results vary from bank to bank?
A. Yes, because each bank has different interest rates and fees, the EMIs can vary accordingly.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?