Working Capital Loan Calculator | Tips to Calculate Working Capital

A working capital loan calculator is basically an online tool which helps to calculate the exact EMI that the individual has to pay post availing a working capital loan. One of the major benefits of working capital loan calculator is that the individual gets to know the exact EMI amount towards the loan repayment.

Also, it helps in selecting the correct loan amount that you have to apply for, choose a proper tenure,
and exact EMI that you have to pay each month. Knowing the amount in advance will help to make
your financial decisions tactfully.

What is the formula used for the online working capital loan calculator?

The working capital loan calculator works on a simple formula i.e.

E = P * R * (1+R) ^N / ((1+R) ^N-1)

Each variable stands for something. Following is the explanation for the same:

R = Rate of Interest

P = Principal Loan Amount

N = Tenure of the loan, offered in months

E = EMI

The applicant can choose the loan amount required after successfully doing a working capital calculation of your business.

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