As a businessman, you are comfortable with numbers, equations, ratios, revenues, profits, EMIs, principal amount, loan tenure and interest rates. We want you to tell us what the following equation calculates
P×r×(1 + r)n/((1 + r)n – 1) where
P is principal,
r is the rate of interest and
n is the tenure in number of years
If you answered EMI, then you are absolutely right.
Now, imagine you are taking a business loan at a particular business loan interest rate and you want to know the EMI. You could do the calculation using the above equation manually and come up with the answer. You find the EMI is too high and want to reduce it. So, you reduce the principal amount and recalculate the EMI manually using the above equation. But, you want to see if you can retain the original principal amount and increase n which represents tenure. You again use the above equation and calculate EMI manually. Now, you are in a position to decide your EMI.
Probably, you found the manual calculation tedious and it tested your patience. You could have made errors while solving the equation for different values of P, r and n. You felt the need for an easier way to calculate EMIs.
There is a simple way to calculate EMI, and that is to use our Business Loan Calculator, a convenient and effortless way to calculate EMIs. Our Business Loan Calculator uses software to calculate EMIs quickly and is free of errors.
How to use the Business Loan Calculator
Using the calculator is simple, easy and effortless. All you have to feed are the following values
Business loan amount required
Rate of interest
Tenure of the loan in months
When you click on ‘calculate’ the calculator displays the following three results
Total interest amount paid for the tenure
Total amount repayable which is the principal amount plus the interest payable
Now, you can change any of the three variables – P, r and n and recalculate the EMI. You can do this process as many times as you want till you are comfortable with the principal amount, loan tenure and interest rate that offer you the EMI that you can afford. With our business loan calculator deciding on the business loan parameters is as simple as saying 123 – just entering 3 values to our calculator.