Business Loan Calculator

Business Loan Calculator - EMI & Total Cost | StoreDropship

Business Loan Calculator

Estimate monthly EMI, interest cost, and total repayment. Add processing fees and optional GST to understand what you actually receive and what you truly pay over time.

Loan amount

Tip: You can type with commas too, like 5,00,000 or 500,000.

Currency

Choose a currency for display and copy/download outputs.

Number format (locale)

Only affects formatting; calculations remain the same.

Annual interest rate (%)

Enter nominal annual rate. For 0% loans, EMI becomes principal ÷ months.

Tenure

Common ranges: 6–60 months for MSME loans, longer for secured term loans.

Processing fee type (optional)

Fees reduce what you receive and increase your effective borrowing cost.

Loan start date (optional)

Used only for schedule month labels; it does not change EMI math.

Date format

Choose a display style that matches your region or team.

Estimated monthly EMI

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Your EMI is calculated using standard amortization for monthly repayments. Review the breakdown below for interest, fees, and true total cost.

Total interest

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Interest paid across the full tenure.

Total repayment (EMIs)

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Sum of all monthly EMIs.

Effective APR (estimate)

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Includes fees (and GST if selected).

Processing fee

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Upfront charge (before GST).

GST on fee (18%)

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Shown only if enabled.

Net amount received

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Loan amount minus upfront charges.

Planning tip: Try 2–3 tenures and choose an EMI that stays comfortable even in slow business months, not just in peak season. When comparing lenders, focus on effective APR and total cost, not only the nominal interest rate.

🔒 Your privacy is safe. All processing happens in your browser. No data is stored or sent to any server.

How to Use Business Loan Calculator

Enter loan basics

Enter the loan amount, then choose your currency and number format (Indian or international style) for clean, readable results.

Set interest rate and tenure

Type the annual interest rate and select your tenure in years or months so the calculator can convert it into monthly repayments.

Add fees for real cost

Select a processing fee type and value, then optionally include GST (18%) to estimate the true upfront deductions and effective APR.

Click Calculate EMI

Click Calculate EMI (or press Enter) to instantly view EMI, total interest, total repayment, net disbursed amount, and APR.

Copy or download your output

Use Copy Summary for sharing in WhatsApp or email, or Download CSV to analyze the amortization schedule in a spreadsheet.

Key Features

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Instant EMI in seconds

Fast monthly EMI results with a clean breakdown that loads instantly on mobile and desktop.

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Accurate standard formulas

Uses the widely accepted amortization formula for fixed-rate monthly repayment business loans.

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Fees and GST included

Add processing fees and optional GST (18%) to estimate net disbursal and total cost.

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Privacy-first calculation

No tracking, no cookies, no storage—everything runs locally in your browser.

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Effective APR estimate

Approximate APR helps you compare lenders fairly when charges differ despite similar rates.

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Mobile-friendly and accessible

Keyboard-ready inputs, clear errors, and WCAG-friendly contrast for real-world usability.

Formula Used

Most business term loans in India and many other countries are repaid using a fixed monthly EMI schedule. The EMI stays the same each month (assuming a fixed interest rate), but the composition changes: interest is higher in the beginning and principal repayment increases later. This calculator uses the standard amortization approach and then layers on upfront charges to estimate the true borrowing cost.

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

Calculation Components

P (Principal): The loan amount you borrow (for example, ₹5,00,000). This is the base for EMI calculation.
r (Monthly rate): The annual interest rate converted to a monthly decimal rate: r = (Annual% ÷ 100) ÷ 12.
n (Number of months): Total tenure expressed in months. If you choose years, the tool multiplies by 12.
Total Interest: Total of all EMIs minus principal. It tells you how much you pay just for borrowing.
Processing Fee and GST: Optional upfront charges that reduce your net disbursed amount and increase effective cost.
Effective APR (Estimate): An annualized rate inferred from the cash flows (net received now, EMIs paid monthly), useful for comparisons.

Example in an Indian MSME context: suppose you take a term loan to purchase a packaging machine for your D2C brand in Pune. Even if two lenders offer the same interest rate, one may charge a 2% processing fee plus GST, while the other charges a flat ₹2,000 fee. The EMI may look similar at first glance, but the net amount you receive and your effective APR can differ. By including fees and GST, this tool makes the comparison more realistic so you can choose the option that protects cash flow and improves profitability.

Note: this calculator assumes a fixed rate and monthly repayment schedule. If your lender uses daily interest for the first partial month, changes EMI dates, or modifies rates during the tenure, your final statement may vary slightly. For planning, budgeting, and pre-approval comparisons, the standard formula is the clearest and most widely accepted baseline.

Calculation Examples

MSME equipment loan in Bengaluru

Input: Loan ₹8,00,000, 13.5% annual, 4 years, processing fee 1.5% + GST.

Result: EMI ≈ ₹21,765; total interest ≈ ₹2,44,720; net received ≈ ₹7,85,840 (after fee+GST).

Use Case: Helps a small manufacturer estimate monthly outflow and compare two NBFC offers with different fees.

Working capital term loan in Delhi

Input: Loan ₹5,00,000, 16% annual, 24 months, flat processing fee ₹5,000 (no GST).

Result: EMI ≈ ₹24,451; total interest ≈ ₹86,824; total repayment ≈ ₹5,86,824.

Use Case: Useful for planning inventory buys before a festive season and ensuring EMI fits monthly collections.

International comparison in USD

Input: Loan $20,000, 10% annual, 36 months, fee 1% (no GST).

Result: EMI ≈ $645; total interest ≈ $3,228; effective APR increases slightly due to the upfront fee.

Use Case: Helps compare two small business lenders where one advertises a low rate but charges higher origination fees.

Zero-interest promotional loan (0%)

Input: Loan ₹1,20,000, 0% annual, 12 months, no fee.

Result: EMI = ₹10,000; total interest = ₹0; total repayment = ₹1,20,000.

Use Case: Quick sanity check for a supplier financing offer where the cost is embedded elsewhere.

What is Business Loan Calculator?

A Business Loan Calculator is a simple finance tool that estimates the monthly EMI (Equated Monthly Instalment) and the overall cost of borrowing for a standard fixed-rate loan. It is useful for Indian MSME owners, startup founders, shopkeepers, freelancers, and finance students who want to understand repayment before taking a loan. Instead of guessing, you can test different interest rates and tenures to see what happens to cash flow, total interest, and the true total cost.

This StoreDropship calculator goes a step further by letting you add processing fees and optional GST, so you can estimate the net amount you actually receive and an effective APR that better reflects real charges. That means it is practical for comparing bank vs NBFC offers, planning monthly budgets, and preparing internal approvals. The tool is built using standard amortization mathematics and is designed to be transparent, fast, and privacy-safe because everything runs locally in your browser with no data storage.

Frequently Asked Questions

Is this Business Loan Calculator completely free?

Yes. This Business Loan Calculator is completely free to use for as many calculations as you want. There are no paid tiers, no hidden limits, and no sign-up required. You can calculate EMI, interest, processing fees, GST impact, and an effective APR estimate without sharing any personal details. It is designed for Indian users as well as international users who want quick, reliable loan estimates.

Is my data safe and private?

Your data stays private because all calculations happen inside your browser. The tool does not send your loan amount, rate, or tenure to any server, and it does not store information using cookies or browser storage. This makes it suitable even when you are checking sensitive business numbers like working capital requirements, monthly cash flow, or repayment capacity. You can close the page anytime and nothing is retained.

How accurate is this Business Loan Calculator?

The EMI and interest calculations follow the standard amortization formula used by banks and NBFCs for monthly repayment loans. Results are highly accurate for typical fixed-rate business loans. Small differences can still occur due to lender-specific rules such as rounding to the nearest rupee, EMI date selection, broken-period interest, step-up/step-down EMIs, or insurance add-ons. Use this tool for planning and comparisons, and confirm final numbers in your lender’s official sanction letter.

What is EMI in a business loan?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month when you take a standard fixed-rate loan with monthly repayments. Each EMI includes two parts: interest on the outstanding balance and repayment of principal. In the early months, interest is usually higher, and the principal portion grows gradually over time. Knowing your EMI helps you plan monthly cash flow, especially for seasonal businesses.

What happens if the interest rate is 0%?

If the annual interest rate is 0%, the EMI becomes a simple division of principal by the number of months. In that case, there is no interest portion, so total interest is zero and total payment equals the principal amount. This tool automatically handles 0% without errors. Keep in mind that real-world offers may still include processing fees or other charges, so the effective cost can be non-zero even if the nominal rate is 0%.

Does the calculator include processing fees and GST?

Yes. You can add a processing fee either as a percentage of the loan amount or as a flat amount. You can also choose to include GST at 18%, which is common in India for many loan-related fees. The results show how fees affect the net amount you actually receive and the total cost you pay over the full tenure. This makes the tool useful for comparing two lenders where EMI is similar but charges differ.

What is effective APR and why does it matter?

Effective APR is an estimated annualized rate that reflects the true borrowing cost after considering upfront charges like processing fees (and GST if included). Two loans can have the same interest rate but different fees, which changes the real cost. Effective APR helps you compare options on an equal basis, especially when choosing between a bank loan, NBFC loan, or a short-tenure working capital product. This tool estimates APR using the loan cash flows you enter.

Can I use this for working capital or MSME loans?

You can use it for any business loan product that behaves like a standard amortizing loan with fixed monthly EMIs, such as term loans for MSMEs, equipment loans, or some working capital loans structured as EMIs. If your product is a revolving credit line, overdraft, or daily/weekly repayment model, the calculation will not match perfectly. In those cases, treat the output as a planning estimate and consult the lender’s repayment schedule.

Why does my bank EMI differ slightly from this tool?

Minor differences are common because lenders may apply rounding rules, calculate interest on a daily basis for the first partial month, adjust EMI dates, or include compulsory insurance/processing add-ons in the loan amount. Some lenders also calculate EMIs using a different compounding convention or apply interest rate changes. This calculator is optimized for clarity and standard practice, so you can compare offers quickly. For exact figures, rely on the lender’s official amortization schedule.

What tenure should I choose for a business loan?

A shorter tenure usually reduces total interest but increases your monthly EMI, which can strain cash flow. A longer tenure reduces EMI but increases total interest paid over time. For Indian small businesses, the right choice depends on monthly profit stability, seasonality, and planned reinvestment. A practical approach is to test multiple tenures in this calculator and choose an EMI that you can pay comfortably even in slower months, while keeping total cost reasonable.

Can I download the amortization schedule as CSV?

Yes. After you calculate, you can download a CSV file of the amortization schedule. This is useful if you want to track month-by-month interest and principal, build a repayment calendar, or share data with your accountant. The tool also shows a quick on-page preview so you can understand how the balance reduces over time without opening a spreadsheet. The CSV is generated locally in your browser.

Does this calculator store my results or share them online?

No. The calculator does not store results in cookies, local storage, or any database. It also does not upload your inputs anywhere. If you use Copy Summary, the text is copied to your clipboard only on your device. If you download CSV, the file is created locally and saved by your browser. This privacy-first approach is important when you are evaluating business funding options or preparing a proposal for partners.

Free Online Business Loan EMI Calculator with Fees & APR