How this calculator works
This gives the monthly EMI, the full repayment schedule and, more importantly, the true annual cost once the processing fee is counted. Lenders quote the interest rate; the fee comes out of the money you receive, so you pay interest on money you never got.
Use the schedule to see how much principal you still owe at any month, which matters if you plan to prepay or refinance.
Formula
Worked example
A ₹25 lakh loan at 15% for 36 months has an EMI of ₹86,663 and total interest of about ₹6.2 lakh. A 2% processing fee plus GST takes ₹59,000 off the amount you receive, which lifts the effective annual cost to about 18%.
Things to watch
- Compare lenders on APR, not the headline rate.
- Early EMIs are mostly interest. Prepaying in year one saves far more than prepaying in the final year.
- Check for foreclosure charges before you plan to prepay; many fixed-rate business loans have them.
Questions
How is EMI calculated?
With the reducing-balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months.
Why is the APR higher than my interest rate?
Because the processing fee and its GST reduce the cash you receive while the EMIs stay the same.
Is a flat-rate loan the same?
No. A flat rate charges interest on the original amount for the full tenure. A 12% flat rate over three years costs roughly 21% on a reducing basis.
Can I copy the schedule into Excel?
Yes. Use “Copy table” and paste into Excel or Google Sheets; the columns stay separate.
For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.