# EMI Calculator | Free Tool | Commmerce™

> Calculate monthly EMI, total interest, and total payment for product financing or business loans.

Canonical: https://commmerce.com/tools/emi-calculator.html

Free Tool 

# EMI Calculator

 

Calculate monthly EMI, total interest, and total payment for product financing or business loans.

     Loan amount (₹) Interest rate (% p.a.) Tenure (months)    

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[Margin Calculator](margin-calculator.html)[Pricing Calculator](pricing-calculator.html)[Discount Calculator](discount-calculator.html)[Marketplace Commission](marketplace-commission.html)  **Disclaimer:** This free tool is provided by Commmerce for general informational and estimation purposes only. Results are indicative and may not reflect your exact figures, current tax rates, courier charges, marketplace fees, or regulatory requirements, which change over time and vary by case. Commmerce makes no warranty as to accuracy or completeness and accepts no liability for any loss or decision made based on this tool. Always verify with a qualified professional (chartered accountant, tax advisor, or the relevant official source such as the GST portal or CBIC) before acting.    

## How the EMI Calculator works

 

The calculator uses the standard reducing-balance EMI formula: EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan/principal amount, r is the monthly interest rate (annual rate divided by 12, as a decimal), and n is the number of monthly instalments. It then shows total payment (EMI x n) and total interest (total payment minus principal). Use it for business loans, equipment finance, or customer EMI offers.

 

### Worked example

 

For a shop-fit-out loan of ₹5,00,000 at 12% annual interest over 36 months: monthly rate r = 0.01, n = 36, giving an EMI of about ₹16,607, a total payment of about ₹5,97,852, and total interest of about ₹97,852.

 

## Frequently asked questions

  Does this calculate flat or reducing interest?

It uses reducing-balance (diminishing) interest, which is how most Indian bank and NBFC loans work. Flat-rate schemes charge more overall, so always confirm which type your lender is quoting.

 Can I use this for offering EMI to my customers?

Yes. Enter the product price as principal, the financier's interest rate, and the tenure to see the customer's monthly instalment before you promote a No-Cost or standard EMI offer.

 Is GST included in the EMI?

No. Enter the GST-inclusive purchase price as the principal if you want the EMI to cover tax. The calculator does not add GST on its own.

 What tenure should I choose for a business loan?

A longer tenure lowers the monthly EMI but increases total interest paid. Compare a few tenures here and pick the shortest EMI your monthly cash flow can comfortably support.

    

### Offer EMI and credit options at checkout

 

Commmerce POS supports split payments, EMI, and Khata credit ledgers for your customers.

 [See Billing & Checkout](https://commmerce.com/pos)     [Book a demo](https://commmerce.com/schedule-demo/)