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Business Loan Calculator

Calculate EMI, view amortization schedule, and export as PDF

Last Updated: July 2026
Business loan amount
Business loan interest rate
Repayment period
Monthly EMI
—
Fixed monthly payment
Total Interest
—
Over entire tenure
Total Payment
—
Principal + Interest

Principal vs Interest Over Time

Yearly Summary

YearPrincipalInterestTotal PaidBalance

Monthly Amortization Schedule

MonthEMIPrincipalInterestBalance

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What Is a Business Loan Calculator?

A Business Loan Calculator computes the EMI for commercial loans used for expansion, working capital, equipment purchase, or any business need. Business loans typically have higher interest rates than personal loans due to higher risk.

At 14% for 5 years on a ₹20 lakh business loan, you pay ₹77 lakh in interest — nearly 39% of the loan amount. This calculator helps you compare offers, plan repayment, and evaluate the true cost of borrowing for your business.

Business Loan EMI Formula

EMI = P × r × (1+r)n / [(1+r)n −1]
P = Loan amountr = Monthly interest raten = Tenure in months

Frequently Asked Questions

What is the typical business loan interest rate?
Business loan rates range from 11% to 24% depending on business vintage, revenue, credit score, and loan amount. Established businesses with good financials get 11-14%. New businesses may face 16-24%. MSME loans under government schemes can be cheaper.
What types of business loans are available?
Term loans (fixed amount, fixed tenure), working capital/overdraft (revolving), invoice discounting, equipment financing, commercial property purchase, and Mudra loans (up to ₹10L under government scheme). Each serves different business needs.
What documents are needed for a business loan?
Business registration, GST returns, ITR for 2-3 years, bank statements (6-12 months), financial statements (balance sheet, P&L), business plan, KYC of proprietors/directors, and collateral documents (for secured loans above ₹50L).
Can I prepay my business loan?
Floating-rate business loans have zero prepayment penalty per RBI guidelines. Fixed-rate loans may charge 2-5% foreclosure fee. Check your loan agreement. Prepayment can significantly reduce interest cost for high-rate business loans.
What is the difference between secured and unsecured business loan?
Secured loans require collateral (property, FD, equipment) and offer lower rates (11-15%). Unsecured loans need no collateral but have higher rates (14-24%). Secured loans allow larger amounts (up to ₹5Cr+) while unsecured typically caps at ₹50L-1Cr.

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