Business Loan EMI Calculator
Calculate business loan EMI with DSCR analysis, cash flow impact, tax benefits, and ROI projections for informed business financing decisions
Typical loan range: ₹5L - ₹5Cr
✓ Healthy DSCR. Banks prefer DSCR ≥ 1.25
Tax Deduction Benefits
Interest paid on business loans is fully deductible as business expense
* Reduces taxable income, lowering overall tax liability
Monthly EMI
₹43,985
Payment Breakdown
Shorter Tenure Impact
By reducing tenure by 2 years:
Current EMI:
₹43,985
New EMI:
₹65,952
EMI Increase:
+₹21,967
Total Interest Saved:
₹2,64,840
Current Tenure:
5 years
New Tenure:
3 years
Recommendation: If your business cash flow can afford ₹21,967 more monthly, you'll save ₹2,64,840 in interest and finish 2 years earlier.
Longer Tenure Impact
By extending tenure by 2 years:
Current EMI:
₹43,985
New EMI:
₹34,773
EMI Decrease:
-₹9,212
Additional Interest:
₹2,81,813
Current Tenure:
5 years
New Tenure:
7 years
Consider: Lower EMI of ₹34,773 improves cash flow but costs ₹2,81,813 more in interest over 2 extra years.
Smart Financial Tips
Optimal EMI Strategy
Keep EMI under 40% of business profit for comfortable repayment
Prepayment Priority
Use bonuses and extra income to reduce principal amount
Investment Balance
Invest 10-20% of EMI amount in SIP for wealth building
Emergency Planning
Maintain 6 months EMI as emergency fund
Total EMI Paid
₹26,39,113
Total Principal Paid
₹20,00,000
Total Interest Paid
₹6,39,113
Total Tax Savings
₹1,91,734
(for business loans)
Net Cost After Tax
₹24,47,379
| Year | Principal | Interest | Total Paid | Balance |
|---|---|---|---|---|
| 1 | ₹3,14,033 | ₹2,13,790 | ₹5,27,823 | ₹16,85,967 |
| 2 | ₹3,52,112 | ₹1,75,710 | ₹5,27,823 | ₹13,33,855 |
| 3 | ₹3,94,809 | ₹1,33,014 | ₹5,27,823 | ₹9,39,046 |
| 4 | ₹4,42,683 | ₹85,139 | ₹5,27,823 | ₹4,96,363 |
| 5 | ₹4,96,363 | ₹31,460 | ₹5,27,823 | ₹0 |