Business Loan EMI Calculator is a specific calculator that you need to know how much money you are required to pay to your lender each month. As for example let us assume you have taken loan amount of Rs. 1, 00, 000/- for the tenure of 2 years at the rate of 14%. So according to this information you will need to pay the total amount of Rs. 1, 15, 230/- including the 2% processing fee.
Now the calculation for the EMI of this will be:
EMI = L.i. (1+i) n / {(1+i) n – 1}
- P = Total Loan Amount
- i = Rate of interest
- n = Tenure of the loan
The EMI Calculator for the business loan is used as per the formula given above. The interest amount is being calculated every month afresh as the principal amount gets decreased. The breakage of the total payable amount is given below in the tabular form. As the months pass the portion of principal amount gets decreased so is the interest amount as the interest is calculated on the basis of reduced loan amount on every month.