Car Loan EMI Calculator
Print| Net Financed Principal | $0 |
| Total Interest Payable | $0 |
| Total Out-of-Pocket Payment | $0 |
The Car Loan EMI Calculator is an essential auto financing tool designed to help car buyers determine their exact monthly repayment obligation. By entering your expected vehicle loan amount, interest rate, loan tenure, and down payment, this calculator generates immediate monthly installment figures and full repayment schedules.
Whether buying a hatchback, SUV, sedan, or electric vehicle (EV), this tool helps you compare financing offers across commercial banks and lenders before signing a loan agreement.
The Car Loan EMI Formula
Auto loans use the standard reducing-balance Equated Monthly Installment (EMI) formula:
EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Where:
- EMI: Monthly installment payment amount.
- P: Principal Loan Amount (
P = Car On-Road Price - Down Payment). - r: Monthly Interest Rate (
Annual Interest Rate / 12 / 100). - n: Total Loan Tenure in Months (e.g., 36, 60, or 84 months).
Car Loan EMI Benchmark Table
The table below displays estimated monthly EMIs and total interest payable for a ₹1,000,000 Net Car Loan across typical loan tenures (at 8.75% annual interest):
| Loan Amount (₹) | Interest Rate (%) | Tenure (Years / Months) | Monthly EMI (₹) | Total Interest Payable (₹) |
|---|---|---|---|---|
| ₹1,000,000 | 8.75% | 3 Years (36 mos) | ₹31,680 | ₹140,480 |
| ₹1,000,000 | 8.75% | 5 Years (60 mos) | ₹20,637 | ₹238,220 |
| ₹1,000,000 | 8.75% | 7 Years (84 mos) | ₹15,959 | ₹340,556 |
Step-by-Step Car Loan EMI Calculation Example
Consider buying a car with an on-road price of ₹1,200,000. You pay a ₹200,000 down payment and borrow the remaining ₹1,000,000 at an annual interest rate of 9.0% for 5 years (60 months).
Step 1: Calculate Net Loan Amount
P = ₹1,200,000 - ₹200,000 = ₹1,000,000
Step 2: Compute Monthly Interest Rate
r = 9.0 / 12 / 100 = 0.0075 per month
Step 3: Apply reducing-balance EMI Formula
EMI = [1,000,000 * 0.0075 * (1 + 0.0075)^60] / [(1 + 0.0075)^60 - 1]
EMI = [7,500 * 1.5657] / 0.5657 = ₹20,758 / month
Step 4: Calculate Total Outflow
Total Repayment = ₹20,758 * 60 = ₹1,245,480
Total Interest = ₹1,245,480 - ₹1,000,000 = ₹245,480
Result: Your monthly EMI is ₹20,758, with total interest costs of ₹245,480 over 5 years.
Frequently Asked Questions
What is the difference between on-road price and ex-showroom price?
Ex-showroom price is the cost of the vehicle at the dealership before taxes. On-road price includes ex-showroom price plus mandatory state road tax, registration charges, insurance, dealer handling fees, and FASTag costs.
Is used car loan interest higher than new car loan interest?
Yes. Interest rates on used car loans are typically 2% to 4% higher than new car loans due to higher lender risk and vehicle depreciation factors.
What is the maximum tenure available for a car loan?
Most commercial banks offer auto loan tenures ranging from 1 year (12 months) up to 7 years (84 months).
Can I make partial prepayments on my car loan?
Yes. Many lenders allow partial prepayments after a minimum period (such as 6 or 12 months). Partial prepayments directly reduce your outstanding principal, allowing you to lower your monthly EMI or shorten your remaining tenure.