Business loan EMI calculator runs on three basic loan details, such as loan amount, interest rate and loan duration. By entering these details, the applicant can obtain the EMI details that he/she needs to pay to the lender.
Formula to Calculate Business Loan EMI
- [P x R x (1+R) ^ N]/[(1+R) ^ (N-1)]
Wherein,
- P refers to the loan principal;
- R refers to the rate of interest on a monthly basis;
- N refers to the loan repayment tenure in months.
Amortization Schedule
An amortization schedule shows the detailed breakdown of your loan components. It shows exactly how much of each loan installment goes toward interest and the principal.
Example: If you borrow a Rs. 15 lakh business loan for 5 years at an interest rate of 13%, the following will be your amortization schedule.
Note: The schedule given below is for 12 months. For the rest of the months, the principal amount and interest will continue to adjust progressively.
| Month |
Principal (Rs.) |
Interest (Rs.) |
Principal + Interest (Rs.) |
Balance to be Paid (Rs.) |
| 1 |
17880 |
16250 |
34130 |
1482120 |
| 2 |
18073 |
16056 |
34130 |
1464047 |
| 3 |
18269 |
15861 |
34130 |
1445778 |
| 4 |
18467 |
15663 |
34130 |
1427311 |
| 5 |
18667 |
15463 |
34130 |
1408644 |
| 6 |
18869 |
15260 |
34130 |
1389775 |
| 7 |
19074 |
15056 |
34130 |
1370701 |
| 8 |
19280 |
14849 |
34130 |
1351421 |
| 9 |
19489 |
14640 |
34130 |
1331931 |
| 10 |
19700 |
14429 |
34130 |
1312231 |
| 11 |
19914 |
14216 |
34130 |
1292317 |
| 12 |
20130 |
14000 |
34130 |
1272188 |
