A fixed payment amount set by borrowers to lenders at a particular date per month is known as equated monthly instalment (EMI). They are paid off, both principal and interest, every month so that over a stated number of years, the loan is completely paid off. With highly common kinds of loans, such as business and commercial, the borrower creates fixed periodic payments to the lender for numerous years to finish the loan. Now, you can easily calculate EMI by using **EMI calculators****.**

**What is a Loan EMI calculator?**

- EMI is the payment that is set by the borrower to make loan repayment of the loan every month. All you need to do is enter the variable of the loan like the tenure, interest rate, and principal amount, and it will immediately bring a result that is the EMI.
- Determining EMI by utilising the online EMI calculator is easy; also, you find your loan EMI within seconds. These calculators are available 24/7 without any fee. So, if you have an electronic device and primary internet connection, you can determine or compare different loan EMIs from anywhere at any time.
- If you have taken a business loan, then you can easily use an EMI calculator for a business loan to quickly determine the final amount. Also, the number of EMIs is equal to the number of months in the loan repayment tenure.

**Understanding Equated Monthly Installments (EMI)**

EMIs vary from variable payment plans, in which the borrower is allowed to pay higher amounts at the discretion. However, in EMI plans, borrowers usually are only permitted one fixed payment amount per month. The prime advantage of an EMI is that you know the amount you require to pay for your loan every month; this makes your budget setting a lot easier.

**Simple & Quick Ways to Calculate EMI**

**By Using EXCEL**

One of the quickest methods of determining the EMI is by utilising the EXCEL spreadsheet. In this, the function for calculating the EMI is PMT and not EMI. You require three variables; the rate of interest (percentage), number of periods (nper) and, lastly, the value of the loan or present value (PV).

The Formula:

PMT (rate, nper, PV).

The number of periods means the number of EMIs.

The result will come in negative or red, which shows the cash outflow of the borrower.

**By Using Mathematical Formula**

Most people can’t understand or get access to the EXCEL spreadsheet. In that case, you can utilise your mathematical brain or an electronic calculator to calculate the amount.

The Formula:

EMI = [P x R x (1+R) ^ N]/ [(1+R)^N-1]

Here, **P** stands for the loan amount or principal, **R** is the interest rate per month, and **N** is the number of monthly installments. When you utilise this formula, you will acquire the same results that you will obtain through the Excel spreadsheet.

**Using Other Methods**

The EMI can determine by employing the reducing balance method and the flat rate method as well. The formula for a flat rate is determined by summing the principal loan amount and the interest on the principal. The sum then divided by the number of durations in months.

The EMI reducing balance method is determined by utilising the below-mentioned formula:

(P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1)

Here,

P is equal to the principal amount borrowed;

I is the annual interest rate,

R is the periodic monthly interest rate,

N is the total number of monthly payments,

T is the number of months in a year.

**Eligibility Criteria for Business Loans**

The eligibility criteria for qualifying a business loan from lenders and NBFCs can be different but not impossible. You require fulfilling the essential factors to avail of the advantages of the loan.

- You should be between the ages of 25-55 years.
- Your business should have its Income Tax Return filed for at least the last two year.
- You may require submitting other relevant financial documents during document verification.

**How does Business Loan EMI Calculators work?**

Mostly, a business loan is one of the straight paths to secure funding for your business. Though, you should apply for a loan only if you’re confident enough to pay it all back, along with interest. The starting size of the loan, the duration available for repayment, and the interest rate charged are some of the vital aspects of working out what you own and when. A **business loan** EMI calculator works on the following specifications to determine your EMI:

Loan amount

Tenor

Rate of interest

The formula: E = P * r * (1+r)^n / ((1+r)^n-1)

- Where ‘E’ is EMI
- ‘P’ is the Principal Loan Amount
- ‘r’ is the rate of interest calculated per month
- ‘n’ is the tenor or period of the loan

If you’re planning to take a business loan, then connect with ZipLoan as it is a renowned firm. They provide **unsecured business loans** with the lowest interest rates and various other benefits to the interested people.

**Advantages of EMI Calculator **

Besides, knowing how much money you will require to pay for your loan per month, there are numerous advantages of using **EMI calculators. **After using it, you don’t strain yourself financially and avoid financial distress.

**All Time Availability**: The online calculator is available 24/7 and can be accessed anywhere at any time. You can utilise the calculator numerous times according to your needs without leaving your comfort zone. This will also allow you to avoid using complex mathematical calculations; instead, you can use the internet and the EMI calculator.**Precise Results:**Even if you’re a mathematical genius, there are chances that your calculations by hand come with a higher risk of errors. Furthermore, doing the same calculations repeatedly can lead to significant mistakes and wrong results. When you separately determine EMIs on loans provided by different lenders, the chance of mistakes rises. The online**EMI calculator for business loan**assists you in doing precise calculations with a few clicks.**Save Time & Avoid Complex Calculations**: Comparing the loans provided by different lenders can be daunting and time-consuming as you may use the same formula again and again. While doing it manually, you will require spending hours determining EMIs for a single loan. Though, with the online**EMI calculators**, you get the advantage to save your time and complete the lengthy and tedious calculations within seconds. Try out different combinations that you desire from the convenience of your home.