Car Loan EMI Calculator
A car loan EMI is the fixed monthly amount you repay on an auto loan until the vehicle is fully paid off. Use this car loan EMI calculator to instantly find your monthly instalment, the total interest, and the overall cost of the loan — so you know exactly what a car fits your budget before you sign.
- Principal
- ₹8,00,000
- Total Interest
- ₹2,08,089
- Total Payment
- ₹10,08,089
Monthly EMI
₹16,801
- Principal79%
- Interest21%
Formula
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- P
- Principal — the car loan amount (on-road price minus down payment).
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100.
- n
- Loan tenure in months (years × 12).
Car loans are secured against the vehicle, so rates sit between home and personal loans. Tenures are usually 1–8 years; a larger down payment lowers the principal and therefore the EMI.
Worked example
Suppose you take a car loan of ₹8,00,000 at 9.5% per annum for a tenure of 5 years (60 months).
- Loan Amount (P)
- ₹8,00,000
- Annual Interest Rate
- 9.5%
- Tenure
- 5 years (60 months)
The monthly EMI is about ₹16,801. Over 5 years you repay roughly ₹10,08,089 in total — about ₹2,08,089 of which is interest on top of the ₹8,00,000 you borrowed.
Year-by-year repayment breakdown
Based on the default Car Loan EMI Calculator values above — the loan amount, interest rate and tenure shown in the calculator. Adjust the sliders to recalculate your own figures.
- Monthly EMI
- ₹16,801
- Total interest
- ₹2,08,089
- Total payment
- ₹10,08,089
- Interest / principal
- 26%
In the first year, about 35% of what you pay goes towards interest rather than reducing the balance. From year 1 onwards, more of each year's payments goes to principal than to interest.
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| 1 | ₹1,31,228 | ₹70,384 | ₹2,01,612 | ₹6.69 Lakh |
| 2 | ₹1,44,253 | ₹57,360 | ₹2,01,613 | ₹5.25 Lakh |
| 3 | ₹1,58,569 | ₹43,043 | ₹2,01,612 | ₹3.66 Lakh |
| 4 | ₹1,74,306 | ₹27,305 | ₹2,01,611 | ₹1.92 Lakh |
| 5 | ₹1,91,644 | ₹10,006 | ₹2,01,650 | ₹0 |
How the car loan EMI calculator works
Adjust the loan amount, interest rate and tenure sliders to see your EMI and a principal-versus-interest breakdown update instantly. Enter the on-road price minus your planned down payment as the loan amount to model your actual financing.
Choosing a car loan that fits
Because cars lose value over time, it’s wise to avoid stretching the tenure just to lower the EMI — you could end up owing more than the car is worth. A healthy down payment and a 3–5 year tenure keep the total interest reasonable and your equity in the car positive.
Tips to reduce your car loan cost
- Put down a larger down payment to finance less.
- Keep the tenure short — ideally 3–5 years.
- Compare new-car rates across banks and the dealer’s finance arm.
- Prepay if your lender’s foreclosure charges are low.
Frequently asked questions
How is car loan EMI calculated?
Car loan EMI uses the reducing-balance formula EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the financed amount, r is the monthly interest rate and n is the tenure in months. Enter your amount, rate and tenure to see it instantly.
How does the down payment affect my car loan EMI?
A larger down payment reduces the amount you finance (the principal), which lowers both your EMI and the total interest. Enter the on-road price minus your down payment as the loan amount to see the effect.
What is a typical car loan tenure?
Car loans usually run 3–7 years. A longer tenure lowers the EMI but increases total interest, and since cars depreciate, a very long tenure can leave you owing more than the car is worth. A 3–5 year tenure is common.
Should I prepay my car loan?
Prepaying reduces your outstanding principal and the interest you pay overall. Check whether your lender charges a foreclosure fee; if the saved interest exceeds the fee, prepaying is usually worthwhile.
Does the car loan interest rate depend on the car?
Yes. Rates can differ for new versus used cars (used-car loans cost more), and they also depend on your credit profile and the lender. This calculator lets you test any rate so you can compare offers.