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Franchise loan EMI calculator

Enter the loan amount, the interest rate on your quote and the tenure. The calculator shows the monthly EMI, the total interest over the loan and how the balance falls each year, then lets you carry the EMI straight into the franchise payback calculator.

  • EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), on a reducing balance.
  • A longer tenure lowers the EMI but raises the total interest.
  • Add the EMI to your monthly costs before you judge a franchise's payback.

Your loan

The starting figures are an example, not a suggested loan size or rate. Use the amount and rate from your own lender's quote.

= ₹10,00,000 — ten lakh

% a year
years
Monthly EMI
₹21,247
60 instalments
Total interest
₹2,74,823
Total repaid
₹12,74,823
Use this EMI in the payback calculator →
Year-by-year repayment
YearPrincipal paidInterest paidBalance at year end
1₹1,62,268₹92,696₹8,37,732
2₹1,79,260₹75,705₹6,58,472
3₹1,98,031₹56,934₹4,60,442
4₹2,18,767₹36,198₹2,41,675
5₹2,41,675₹13,290₹0

Before you borrow for a franchise

  • Check whether the lender will fund the franchise fee at all. Many treat it as an intangible and expect you to pay it from your own money.
  • Ask whether the rate is fixed or linked to a benchmark that can move during the tenure, and what the prepayment terms are.
  • Count processing fees, insurance and any collateral costs in the real cost of the loan, not just the interest.
  • Keep the EMI for the months the outlet is still building sales. Payback starts only once the outlet covers the EMI as well as its running costs.
Franchise loans and schemes in IndiaFull cost guidePayback calculator

Franchise loan EMI: common questions

+How is a loan EMI calculated?

Banks in India quote term loans on a reducing balance, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual interest rate divided by 12 and by 100, and n is the number of monthly instalments. Each EMI pays that month's interest first and the rest reduces the principal.

+Should the EMI go into my franchise payback calculation?

Yes, if the loan is paying for the outlet. The EMI is a real monthly outgoing until the loan is cleared, so it lengthens payback on your own money. The button under the result carries the EMI into the payback calculator.

+Does a longer tenure make a franchise loan cheaper?

It lowers the EMI but raises the total interest you pay, because the balance stays outstanding for longer. Compare the total interest at two or three tenures before you choose; the schedule below shows how slowly the balance falls in the early years.

+What interest rate should I enter?

The rate on the sanction letter or quote you actually receive. Rates differ by lender, scheme, your credit history and whether collateral is offered, so we do not suggest one. The franchise loan guide covers the government schemes and what lenders ask for.

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