Loan EMI Calculator 2019296 views
- Calculate your EMI for Business Loan and Apply Accordingly.
- See the factors that determine the Calculation of EMI.
Business Loan provides a great help in expanding the business and its resources. Due to these funds, one can easily put more resources into the business and get a heavy outcome. But before you apply for a business loan do you know what would be the EMI of the loan? Well, this could be only determined with the help of the Business Loan EMI Calculator. This professional calculator will help you to find out the monthly instalment to be paid once you apply for the business loan.
There are some factors that determine the amount of EMIs to be paid. The most important factor is the business loan interest rates. The higher the rate of interest, the higher will be EMI. Before, applying for any business loan make sure that you are familiar with the interest rate and all the hidden charges.
|Monthly Instalment (EMI)|
|Total Interest Amount|
|Total Amount (Principal + Interest)|
Table of Contents
Information Needed for Calculating EMI
There are some details that you have to enter in order to calculate the EMI.
Principal Amount:- The principal amount is that amount which is taken as a loan by the applicant. First, you have to enter the principal amount for initiating the first step towards calculating the business loan EMIs.
Rate of Interest:- The interest rate at which the loan is taken plays an important role in calculating the EMI. Secondly, you have to enter the rate of interest in the EMI calculator at which the bank has given you the loan.
Tenure:- The tenure is that period of time for which the loan has been granted by the bank . The tenure of the loan basically depends on the customer’s relationship with the bank. So, you have to provide the tenure of the loan as well.
Once you enter all the above information you’ll get your monthly instalment payable on the loan amount. You must be curious to know the formula used in the calculation of Business Loan EMI.
The Formula for Calculating Business Loan EMI
EMI = P x R x (1+R)^n/((1+R)^n-1)
P Stands for the Principal Amount.
R Stands for the Rate of Interest Per Month. (Usually, the bank provides a yearly rate of interest)
Small “n” is the tenure given by the bank.
It is really difficult to compute the EMIs following the manual calculation. Therefore you can use a business loan EMI calculator for better evaluation of EMIs.
Factors Affecting the EMI Amount
There are possibly three factors that determine the EMI amount.
Amount of Loan:- The amount of loan taken by the applicant determines the EMI. The EMI for every month will increase if you take a huge amount of loan. Similarly, a low principal amount will result in low EMIs.
Interest on Loan:- The rate of interest on the loan is also a responsible factor for computing EMIs. If the rate of interest is high then the EMI graph will increase and it will decrease when the loan amount is lower down.
Repayment Period:- The repayment period of the loan varies from bank to bank. Some banks give a repayment period of just 3 years and some 5 or 7 years. So the longer repayment period will result in small EMIs. But it will increase the amount of interest.
Benefits of Using Business Loan EMI Calculator
- Determine your monthly expenses which have to be repaid.
- Adjust your tenure depending upon the EMI.
- Know your EMI at all the given rates of interest.
- Identify the maximum loan amount you can take and repay in easy EMIs.