Business Loan Calculator
Your Go-to tool for computing monthly installments on Business Loan!
Introduction to Business Loan
The business loan is a financial gateway where lenders offer money to businesses for their projects or operational needs. Generally, entrepreneurs borrow a some amount from banks or other financial institutions. Businesses sign an agreement and confirm to pay the debts and the interest on time.
Warehouse management, equipment purchases, capital investments, and other business needs fall under business loans. The terms and conditions of business loans are dependent on interest rates, repayment schedules, and collateral needs.
Types of Business Loan
- 1. The Commercial Business Loan
• Businesses with annual revenue of $10 million or more fall under this category.
• Usually, the lenders here are either banks or financial savings institutions. - 2. Personal Loan
• Individuals planning for a startup can avail of personal loans.
• These loans are entirely based on the credit score of the borrowers. - 3. 12% GST
• Processed food items, branded garments, and footwear fall under this category.
• Also, computers and IT services are applicable for 12% GST. - 4. Construction Loan
• Construction loans normally finance new construction projects.
• These loans are used to construct new buildings, renovate old ones, or add structures to the existing ones. - 5. Equipment Business Loan
• An equipment business loan is a short-term loan offered to entrepreneurs.
• These loans are normally used for purchasing equipment or machinery in a factory.
Here’s the formula for adding GST:
GST Amount = (Price x GST%)
Net Price = Product Cost + GST Amount
Check out the formula to remove GST from the total cost.
GST Amount = Original Cost – {original cost x (100/(100+GST%))}
Net Price = Original cost of an item – GST
Formula to Calculate Business Loans
Let’s scroll down to the formula and compute the results.
E = P x r x (1+r)^n / ((1+r)^n -1)
Where,
E = EMI
P = Principal loan amount
r = Rate of interest applied on the loan amount
n = loan tenure
Business Loan Calculator
A business loan calculator helps estimate potential interest associated with the loan. It also assists business owners or borrowers in finding out monthly installments, total interest, and other financial details.
Get clear insights into financial commitment and risks associated with the capital borrowed through a business loan calculator. It accelerates strategic decisions on debt repayment.
How to use our Business Loan EMI Calculator?
- 1. Loan Amount
Enter the loan amount you want to borrow. - 2. Annual Interest Rate
Select the annual interest rate in the percentage applied to the amount borrowed. - 3. Length of the Term
Enter the tenure of the loan amount to be paid. - 4. Extra monthly payment
Enter the monthly amount you will pay to the bank or financial institution.
With all the details in place, our business loan interest calculator projects monthly payments, interest, total interest, tenure, and total cost.
Perks of our Business Loan Calculator
- Access our calculator from anywhere and at any time.
- Simplify complex business loan computations.
- Eliminate errors and ensure accuracy in computations.
- It is free to use and doesn’t need any subscription.
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Frequently Asked Questions (FAQ)
Define SBA Loans
SBA (Small Business Administration) loans cater to the financial requirements of a wide array of businesses. It facilitates borrowers to leverage the loan amount for start-ups, acquisitions, working capital, franchise financing, real estate, debt refinancing, and more.
