Starting or growing a business often requires outside funding, and loans are the most common way to get it. But before taking a loan, every business owner asks the same questions:
- How much will my monthly EMI be?
- What is the true cost of the loan after interest and fees?
- Can I actually afford it with my current business profits?
Our Loan EMI & Affordability Calculator helps you answer these questions instantly. This free tool not only calculates your monthly EMI but also shows whether the loan is affordable compared to your business profit, making decision-making easier and stress-free.
📝 How to Use the Loan EMI & Affordability Calculator
Inputs (what you enter)
Input |
What it means |
Example |
|---|---|---|
Loan amount (₹) |
The money you borrow from bank/NBFC. |
₹1,00,000 loan. |
Annual interest rate (%) |
The % charged by lender yearly. |
12% per year. |
Loan tenure (months) |
Time you will take to repay. |
24 months (2 years). |
Processing fee (%) |
One-time fee charged when loan is given. |
2% = ₹2,000 on ₹1,00,000 loan. |
Expected monthly profit (₹) |
Your average business profit each month, used to check if EMI is affordable. |
₹30,000 profit per month. |
Grace period (optional) |
Months before you start paying EMI. |
0 (usually immediate start). |
Safety threshold (%) |
How much of your profit you are okay to spend on EMI. |
Default: 50% |
Outputs (what you get)
Output |
What it means |
Example (for ₹1,00,000 loan, 12%, 24 months, 2% fee) |
|---|---|---|
Monthly EMI (₹) |
Fixed payment you make every month. |
₹4,707 |
Total repayment (₹) |
Total money you give back to bank (loan + interest). |
₹1,12,976 |
Total interest (₹) |
Extra money paid to bank above the loan. |
₹12,976 |
Processing fee (₹) |
One-time charge deducted upfront. |
₹2,000 |
Effective extra cost (₹) |
Interest + processing fee (true loan cost). |
₹14,976 |
EMI as % of profit |
How much EMI eats into your monthly profit. |
15.7% of ₹30,000 |
Affordable? |
Quick verdict based on your profit vs EMI. |
✅ Yes, EMI is affordable. |
🔢 Example Calculation
Scenario:
- Loan amount = ₹1,00,000
- Annual interest rate = 12%
- Tenure = 24 months
- Processing fee = 2%
- Monthly profit = ₹30,000
Results:
- Monthly EMI = ₹4,707
- Total repayment = ₹1,12,976
- Total interest = ₹12,976
- Processing fee = ₹2,000
- Effective extra cost = ₹14,976
- EMI as % of profit = 15.7%
- Verdict = ✅ Affordable
This means you can safely take this loan, as only a small portion of your profit goes toward EMI.
👉 Try the calculator below and make smarter borrowing decisions today.
If you’re looking for a modern, feature-rich, and trader-friendly platform, Dhan is easily one of the best choices available today. From zero account opening charges to advanced tools like native TradingView, options strategy builder, and free API access, Dhan is clearly built with the modern Indian trader in mind.
Whether you’re an intraday trader, an options strategist, or a long-term investor, Dhan offers the perfect blend of speed, simplicity, and smart technology — without burning a hole in your pocket.
Why wait? Open your Dhan account now and take control of your trading journey with confidence.
👉 Click here to get started with Dhan
Open a Free Dhan Trading & Demat Account
Dhan offers cutting-edge tools for fast, powerful, and informed trading:
- ✅ Zero brokerage on delivery trades
- ✅ Auto-detection of candlestick patterns on charts
- ✅ Advanced Option Chain with Greeks, Max Pain, PCR & more
- ✅ Pre-built & custom Option Strategy Builder (Free)
- ✅ 20 Depth Market Data and Flash Trade execution
- ✅ Margin Trading Facility (MTF) with 4X leverage (75%)
- ✅ 3 Platforms: Mobile App, Web App & Dedicated Options App
- ✅ ScanX Screener: stock insights, trends & news
- ✅ Advanced orders: Trailing SL, Iceberg, Forever Orders
- ✅ Instantly pledge 1,500+ stocks for options margin
- ✅ Trade commodities: Gold, Silver, Crude, Natural Gas
- ✅ Fundamental + Technical analysis across all platforms
No paperwork. Zero account opening charges. Setup in minutes.
Real Estate Capital Gains Calculator India – Calculate LTCG with Indexation & Save Tax
Mortgage Calculator With amortization schedule – Calculate EMI Interest in 1 Step
Home loan Calculator – check loan eligibility
Rent vs Buy Calculator – Which Is Better In 2025 Understand With Examples & Tips
Advanced Profit Margin Calculator | Free Online Tool for Cost, Markup & Revenue
TDS Calculator India (2025) – Calculate Tax Deducted at Source Online
GST Calculator India (2025) | Calculate CGST, SGST & IGST Online
FD vs RD Calculator (Fixed Deposit vs Recurring Deposit Returns)
Checkout monthly payout FD calculator – Find out how much you can get from FD every month?
EPF Calculator India 2025 – Calculate Provident Fund & Interest Online
FIRE Calculator India (2025) – Financial Independence & Early Retirement Corpus Estimator
Stock Return Calculator India (2025) – Calculate Gains, CAGR & Dividends
Property ROI Calculator | Real Estate Investment Returns with Appreciation
Small Business Profitability Calculator – Free Online Tool for Revenue, Costs & Profit Analysis
Profit Margin & Selling Price Calculator – Free Online Tool for Businesses
💡 Pro Tips for Small Business Owners
- Never stretch beyond your comfort zone – Keep EMIs under 40–50% of your average monthly profit.
- Watch the processing fee – Even if EMI looks low, high upfront fees increase the true cost.
- Choose tenure wisely – Longer tenure = smaller EMI but higher total interest. Shorter tenure = higher EMI but cheaper loan.
- Keep a buffer – Always assume profits can drop for a few months. Don’t commit to the maximum EMI you can just afford today.
- Compare lenders – A small difference in interest rate (e.g., 12% vs 13%) can save you thousands over time.
📊 Why Affordability Check Matters
Most EMI calculators only tell you the installment. But our tool goes further:
- It shows EMI as a % of your monthly profit.
- It gives a simple “Affordable / Not Affordable” verdict.
This makes it especially useful for first-time borrowers, small shopkeepers, food stall owners, and local manufacturers who want simple, actionable answers.
❓ Frequently Asked Questions (FAQs)
Q1. What is EMI?
EMI (Equated Monthly Installment) is the fixed amount you pay to the bank every month until the loan is repaid.
Q2. Does a lower EMI always mean a better loan?
Not necessarily. Lower EMIs usually mean longer tenures, which increase total interest.
Q3. Can I repay early?
Yes, most banks allow prepayment, but some may charge extra. Always ask your lender.
Q4. What happens if I miss an EMI?
You may have to pay penalties and it can hurt your credit score. Always keep an emergency buffer.
Q5. What is a safe EMI-to-profit ratio?
Ideally, keep it under 40–50% so you don’t stress your business finances.
📌 Conclusion
The Loan EMI & Affordability Calculator is designed to make borrowing simple and stress-free for small business owners. By combining EMI calculation with a profit-based affordability check, it ensures you borrow within safe limits. Use it before taking any business loan and avoid financial surprises later.
If you’re looking for a modern, feature-rich, and trader-friendly platform, Dhan is easily one of the best choices available today. From zero account opening charges to advanced tools like native TradingView, options strategy builder, and free API access, Dhan is clearly built with the modern Indian trader in mind.
Whether you’re an intraday trader, an options strategist, or a long-term investor, Dhan offers the perfect blend of speed, simplicity, and smart technology — without burning a hole in your pocket.
Why wait? Open your Dhan account now and take control of your trading journey with confidence.
👉 Click here to get started with Dhan
Open a Free Dhan Trading & Demat Account
Dhan offers cutting-edge tools for fast, powerful, and informed trading:
- ✅ Zero brokerage on delivery trades
- ✅ Auto-detection of candlestick patterns on charts
- ✅ Advanced Option Chain with Greeks, Max Pain, PCR & more
- ✅ Pre-built & custom Option Strategy Builder (Free)
- ✅ 20 Depth Market Data and Flash Trade execution
- ✅ Margin Trading Facility (MTF) with 4X leverage (75%)
- ✅ 3 Platforms: Mobile App, Web App & Dedicated Options App
- ✅ ScanX Screener: stock insights, trends & news
- ✅ Advanced orders: Trailing SL, Iceberg, Forever Orders
- ✅ Instantly pledge 1,500+ stocks for options margin
- ✅ Trade commodities: Gold, Silver, Crude, Natural Gas
- ✅ Fundamental + Technical analysis across all platforms
No paperwork. Zero account opening charges. Setup in minutes.
If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback you can leave them in comment box below.
Commodity Trading in India: A Beginner’s Guide to Earning from Gold, Oil & More
🌟 4 Best Brokers for Trading in India (2025) – Dhan vs Upstox vs Zerodha vs Fyers
🏆 Best Demat & Trading Account in India (2025) – Dhan vs Upstox vs Zerodha vs Groww
Here is the list of things as a beginner you should know, if you are thinking for doing intraday trading.
A brief understanding of
How To Invest In Indian Stock Market – Explained With Examples For Beginners
Learn about the basics of candlestick chart patterns and how to use them for intraday trading and investing. You should also learn about the best moving averages to use for better trading result.
Checkout Mastering Intraday Trading: A Beginner’s Guide to Profitable Strategies in the Indian Stock Market
⚠️ Disclaimer
This calculator is for educational purposes only. Actual loan offers, EMIs, and terms may vary by bank/NBFC. Always consult your financial advisor or bank before making borrowing decisions.
Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.
