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Loan Calculator

Start from what you can comfortably pay each month rather than from the loan amount. Enter your monthly payment (EMI) budget, the interest rate and the tenure to see the loan that fits.

This is how lenders size a term loan once they know your repayment capacity.

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$
%
mo

Loan you can service

Maximum loan amountTotal interest
Maximum loan amount
$1,163,120.68
Monthly payment (EMI)
$25,000.00
Total interest
$336,879.32
Total repayment
$1,500,000.00
Lenders also check income, obligations and credit score before sanctioning.

A budget of $25,000.00 a month supports a loan of about $1,163,120.68 at this rate and tenure, an estimate before the lender's own income and credit checks.

Smart next steps

Formula

Loan = EMI × ((1 + r)^n − 1) ÷ (r × (1 + r)^n)

where r = annual rate ÷ 12 ÷ 100 and n = tenure in months

Lenders also cap repayments against your income (a debt-to-income or fixed-obligation ratio), or against business cash flow (debt service coverage), so the amount you're offered can be lower than this mathematical maximum.

Worked example

A $2,000 monthly payment at 7% for 60 months supports a loan of roughly $101,000 with about $19,000 of interest.

How to use this calculator

  1. 1Enter the monthly payment (EMI) you can afford after existing loan repayments.
  2. 2Enter the interest rate and tenure you expect.
  3. 3Read the largest loan that monthly payment supports at that rate and term.

When businesses use it

  • Estimating how much a lender may offer before you apply.
  • Checking whether clearing one existing loan frees enough budget for a larger one.
  • Sizing a working-capital loan against your current repayment capacity.

Starting from what you can repay

Most borrowers start with a loan amount and discover the EMI afterwards. Lenders work the other way: they assess repayment capacity first and derive the sanction from it. Doing the same puts you in a stronger position at the bank and stops you committing to an instalment that only works in a good month.

Lenders cap the share of income that can go to repayments (a debt-to-income or fixed-obligation ratio, with limits that vary by lender and country), and businesses are assessed on debt service coverage instead, usually requiring cash profit of at least 1.25 to 1.5 times the annual repayment. Existing loans, credit card dues and guarantees you have given all count against that limit, so the eligible amount is often lower than the mathematical maximum this calculator shows.

Working capital and term loans are not interchangeable. Buying machinery or a vehicle belongs in a term loan matched to the asset's life; funding stock and receivables belongs in an overdraft or cash credit line, where you pay interest only on what you use. Financing recurring working capital with a term loan is a common and expensive mismatch.

What lenders look at besides the EMI

  • Credit history and score: a strong record gets better pricing, especially on unsecured loans.
  • Bank statement conduct: cheque returns and overdrawn balances hurt more than turnover helps.
  • Recent tax returns and financial statements, often for two to three years (in India, filed ITRs and GST returns).
  • Collateral or a guarantee for larger loans, or a government-backed guarantee scheme where one exists (such as CGTMSE in India).

Learn the maths behind it

  • How to calculate EMI

    EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months.

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Frequently Asked Questions

Lenders set their own limits on how much of your income can go to repayments, including existing loans and card debt, and the limit varies by lender, country and loan type. Ask the lender what ratio it uses before you apply.

No. Processing or arrangement fees, and any tax on them, are extra. Many lenders deduct them from the amount paid out, so check the net amount you'll receive.

The shortest tenure whose monthly payment you can service comfortably. It minimises total interest.

Yes. Unsecured business loans exist, and many countries have government-backed guarantee schemes (for example CGTMSE in India), though rates are usually higher and terms shorter than secured lending.

A longer tenure lowers the EMI, so the same repayment budget supports a larger loan, at the cost of substantially more total interest.

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Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.