Car Loan EMI Calculator

Calculate monthly EMI for your car loan and plan your purchase.

Car Loan Amount

₹

Interest Rate (p.a.)

Loan Tenure

months

Results

Monthly EMI₹16,607

Total Interest₹1.96 L

Total Payment₹9.96 L

Breakdown

Principal

₹8,00,000

Interest

₹1,96,401

Amortization schedule

Year	Principal	Interest	Balance
Year 1	₹1,32,662	₹66,615	₹6,67,336
Year 2	₹1,45,111	₹54,170	₹5,22,227
Year 3	₹1,58,722	₹40,561	₹3,63,506
Year 4	₹1,73,609	₹25,669	₹1,89,896
Year 5	₹1,89,896	₹9,384	₹0

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What is Car Loan EMI?

A Car Loan EMI Calculator helps you estimate the monthly installment for your vehicle purchase. Car loans in India typically range from 1 to 7 years with interest rates between 7-12% depending on the lender, your credit score, and loan amount.

Car loans are secured loans — the car itself serves as collateral. If you default, the bank can repossess the vehicle. Banks generally finance up to 80-90% of the car's on-road price.

Formula

The EMI formula for car loans is:

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)

For an ₹8,00,000 car loan at 9% for 5 years: - Monthly EMI = ₹16,607 - Total Interest = ₹1,96,398 - Total Payment = ₹9,96,398

How to use this Car Loan EMI Calculator?

1. Enter the car loan amount (on-road price minus your down payment). 2. Set the annual interest rate from your bank. 3. Choose tenure between 1-7 years. 4. View your monthly EMI and total cost of the loan.

Frequently asked questions

What is the ideal down payment for a car loan?

Most banks require at least 10-20% down payment. A higher down payment means a lower EMI and less total interest. Aim for 20-25% if possible.

Does car loan interest rate depend on the car type?

Yes, new cars typically get lower rates (7-9%) than used cars (10-14%). Electric vehicles often get preferential rates from some banks.

Can I prepay my car loan?

Yes, most banks allow prepayment after 6-12 months. Floating-rate car loans cannot have prepayment penalties as per RBI guidelines.

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