How to Measure Business ROI: Formula, Examples and Pitfalls
ROI tells you whether money spent on equipment, a renovation or marketing earned more than it cost. Here is how to measure it honestly, compare options and avoid the usual traps.
Free calculator · Any small business
Business loan EMI calculator
Enter the loan amount, the annual interest rate and the number of months. See the monthly instalment, the total interest and the total you will repay.
Results
- Monthly EMI
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- Total interest
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- Total repayment
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The formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months.
Total repayment = EMI × n; total interest = total repayment − P.
Worked example
A loan of ₹5,00,000 at 12% a year over 36 months has a monthly rate of 1%. The EMI is ₹16,607.15; you repay ₹5,97,857.58 in total, of which ₹97,857.58 is interest.
Questions about this calculator
Does the EMI include processing fees?
No. Lenders may charge processing fees, insurance or other charges that are not in this calculation. Ask for the full cost of the loan in writing.
Is this the exact EMI my lender will charge?
It is the standard reducing-balance formula. Lenders may round, calculate interest differently or charge for the first part-month, so their figure can differ slightly.
Read more
Guides that use this calculation.
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- Free toolBreak-even calculatorFind the break-even point in units and in sales from fixed costs, selling price and variable cost, and the units needed for a target profit. Free, runs in your browser.