Car Loan EMI Calculator
Enter the amount you need to finance for a car, the interest rate and the tenure to see your monthly EMI and the total cost of the loan.
Results
Monthly EMI
₹16,606.68
- Total interest
- ₹1,96,401
- Total payment
- ₹9,96,401
- Principal + interest
- Number of payments
- 60
Your monthly EMI is ₹16,606.68 for 60 payments, with ₹1,96,401 in total interest.
Principal vs interest
- Principal₹8,00,000 (80.3%)
- Total interest₹1,96,401 (19.7%)
Yearly payment schedule (5 rows)
| Period | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| Year 1 | ₹1,32,664 | ₹66,616 | ₹1,99,280 | ₹6,67,336 |
| Year 2 | ₹1,45,109 | ₹54,171 | ₹1,99,280 | ₹5,22,227 |
| Year 3 | ₹1,58,721 | ₹40,559 | ₹1,99,280 | ₹3,63,506 |
| Year 4 | ₹1,73,610 | ₹25,670 | ₹1,99,280 | ₹1,89,896 |
| Year 5 | ₹1,89,896 | ₹9,384 | ₹1,99,280 | ₹0 |
Show the calculation steps
- Monthly interest rate r = 9% ÷ 12 = 0.75% (0.0075 as a decimal).
- Number of monthly payments n = 5 years = 60 payments.
- (1 + r)^n = 1.5657, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹16,606.68.
- Total payment = EMI × n = ₹16,606.68 × 60 = ₹9,96,401.
- Total interest = total payment − principal = ₹9,96,401 − ₹8,00,000 = ₹1,96,401.
- Lenders may round the EMI to the nearest whole currency unit, so your bank's figure can differ slightly.
Car loan basics
Car loans are secured against the vehicle and are commonly repaid over three to seven years. A larger down payment means a smaller loan and lower EMI.
Cars lose value quickly, so a very long tenure can leave you owing more than the car is worth for years.
Look beyond the EMI
Budget for insurance, fuel, maintenance and registration as well as the EMI. A common guideline is to keep total car costs to a modest share of monthly income.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total payment = EMI × n
Total interest = Total payment − P
Where:
- P
- = Principal, the loan amount
- r
- = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly payments
Example calculation
₹8,00,000 car loan at 9% for 5 years
Inputs
- Loan Amount
- ₹8,00,000
- Interest Rate
- 9 %
- Loan Tenure
- 5 years
Result
- Monthly EMI
- ₹16,606.68
- Total interest
- ₹1,96,401
- Total payment
- ₹9,96,401
- Number of payments
- 60
Step-by-step
- Monthly interest rate r = 9% ÷ 12 = 0.75% (0.0075 as a decimal).
- Number of monthly payments n = 5 years = 60 payments.
- (1 + r)^n = 1.5657, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹16,606.68.
- Total payment = EMI × n = ₹16,606.68 × 60 = ₹9,96,401.
- Total interest = total payment − principal = ₹9,96,401 − ₹8,00,000 = ₹1,96,401.
Important notes
- On-road costs, insurance and processing fees may be financed separately and are not included.
- Used-car loans often carry higher rates and shorter tenures.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What is a sensible car loan tenure?
Three to five years is common. Shorter tenures cost less interest and reduce the time you owe more than the car is worth.
How does the down payment affect my EMI?
Every rupee of down payment reduces the loan, and the EMI falls proportionally. A 20% down payment on the price is a common target.
Are car loan rates fixed?
Many car loans use a fixed rate for the whole tenure, but check your agreement.
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