🚗 Car Loan Calculator

Calculate your monthly car loan EMI and total payment.

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What is a Car Loan Calculator?

Buying a car in India almost always involves financing part of the on-road price, with dealers and banks typically expecting a down payment of 10–20% upfront and financing the rest over 3 to 7 years. Before you walk into a showroom, it's worth knowing exactly what your monthly outgo will look like — this calculator converts your loan amount, interest rate, and tenure into a precise EMI figure, plus the total interest you'll end up paying over the life of the loan.

Car Loan EMI Formula

EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1]

P is the amount financed (car price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.

Worked Example

Say you finance ₹8,00,000 for a new car at 9% annual interest over 5 years (60 months). The monthly rate is r = 0.0075. Working through the EMI formula gives a monthly instalment of approximately ₹16,602. Across 60 months, you'd pay a total of about ₹9,96,120, of which roughly ₹1,96,120 is interest — worth knowing before you decide between a 5-year and a 7-year tenure.

How to Use This Calculator

  1. Enter the loan principal — the on-road price of the car minus your down payment.
  2. Enter the interest rate quoted by the bank or the car dealership's financing partner.
  3. Enter the loan tenure in months (common Indian car loan tenures range from 36 to 84 months).
  4. Click Calculate to view your EMI, total repayment, and total interest cost.

Things to Consider Before Financing

  • A larger down payment (20% or more) reduces your loan amount and can also help you negotiate a better interest rate.
  • Car loans typically carry higher interest rates than home loans since the vehicle depreciates fast and offers weaker collateral value over time.
  • Check for hidden costs like processing fees, loan insurance add-ons, and prepayment penalties before signing — these can add a meaningful amount to your effective cost of borrowing.
💡 Tip: Deciding how much car you can actually afford? Run the numbers first through the EMI Calculator to see how a car loan EMI fits alongside your other monthly commitments.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.