About Business Loan EMI Calculator
A business loan calculator is a tool used to estimate the monthly payments and total cost of a business loan. This calculator is commonly used by small business owners or entrepreneurs to estimate the affordability of a business loan and plan their finances accordingly.
The business loan calculator typically requires inputs such as the loan amount, the interest rate, and the loan term. The calculator then uses this information to estimate the monthly payments required to repay the loan, including both the principal and interest components.
Business Loan EMI Calculation
Formula for Business Loan EMI Calculation:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
E: Equivalent Monthly Installment,
P: Principal or total loan amount,
r: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
n: Number of monthly instalments or loan tenure in months.
*This formula excludes the business loan processing fee charged by the bank.