Business Loan EMI Calculator: A Must-Know Tool for SMBs

 A business loan EMI calculator is the perfect tool for entrepreneurs looking to understand their monthly outgo towards loan repayment. It is important to be informed and mindful about your spending, especially if it is your business. While calculating the EMI for a business loan can be tricky, it does not have to be because of the technological advancements happening every day.

A business loan EMI calculator makes it simple for you to manage your financial planning by providing brief insights into your EMI account. This includes everything: interest rate, loan principle, and tenure. Let’s continue reading further to understand these EMI calculators better.

How is it Calculated?

Business loan EMI calculator uses this formula: E = P x r x (1+r)n / (1+r) n-1

In this formula,

E = EMI amount

P = Principal amount

r = Rate of interest at which you will be borrowing the loan

n = tenure of the loan over which you will be repaying the loan.

This formula helps determine the fixed monthly payments that will have to be made to clear the loan amount over the stipulated period.

Loan EMI Calculator: 7 Reasons Why It’s An Essential

A business loan EMI calculator is a resourceful tool with several advantages, especially for a small and medium-sized business. It can be beneficial in the following ways:


EMI calculators are easily available online and on loan apps. You can simply download a business loan app and access the calculator from there.

Planning and Budgeting

When you are responsible for running a business, one of the most important parts is budgeting and planning your finances. If you are in the process of loan repayment, knowing the exact EMI amount helps in better financial planning and budgeting. It helps the business in delegating their expenses accordingly among operational costs such as payroll, marketing and inventory.

Increased Understanding

A loan EMI calculator calculates not only monthly EMIs but also the total repayment amount over the loan tenure, including interest. This clarity will help you understand the cost of borrowing, and you can plan your future finances accordingly.

Time Saver

Since manually calculating the EMI can be a long and tedious task, an online loan EMI calculator makes it very easy to do it anytime and anywhere. You can get your results instantly instead of putting in a lot of time and effort. The EMI can be calculated in the convenience of your home or office, which makes it very comfortable for a small or medium-sized business owner.

Strategic Decision Making

Before taking a business loan, it is extremely important to analyse whether it is a good decision and fits within one’s financial capabilities. The loan EMI calculator provides transparency about the monthly repayment obligations based on loan amounts, interest rates, and tenures.

Schedule Your Amortisation

Amortisation of a loan is the process of choosing the time period over which you prefer to settle the loan. Its schedule is called the amortisation table, which has the repayment schedule for a business financing through regular EMIs. The repayment plan is outlined in an amortisation table detailing the schedule for regular EMI payments for business financing.

A loan is composed of two main parts. The first is the principle or the total amount borrowed, the second is the interest rate or the price paid to the lender for the loan. Accepting business investment means you commit to paying back the borrowed money plus interest. The amortisation schedule clarifies the nuances of your monthly EMIs by dissecting each repayment into its principle and interest components.

Avoids Overborrowing

It’s easy to get tempted by attractive loan offers, especially with long repayment tenures. However, a longer tenure, while lowering the EMI, can significantly increase the total interest paid over the loan period. The EMI calculator helps you visualise this trade-off, preventing you from taking on a loan that might become a financial burden in the long run.

Taking Calculated Steps

Simplifying a complex and tedious task is what a loan EMI calculator does best. It is an indispensable tool for anyone who owns a business. A loan EMI calculator provides clarity and foresight to entrepreneurs. You can try a reliable business loan EMI calculator by Tata Capital, which is known for its accurate and precise results.

The business loan EMI calculator can be easily accessed through Tata Capital’s business loan app, providing convenience and ease for business owners. It has a user-friendly interface, which can help input loan details and get instant results.

Experience seamless financial planning and make informed decisions with Tata Capital’s trusted business loan EMI calculator.

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