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Car Loan EMI Calculator

Work out your monthly car loan EMI in seconds. Enter the car price, down payment, interest rate and tenure to see your EMI, the total interest you'll pay, and the full cost of the car on finance.

🚗 Car Loan EMI Calculator ⭐

On-Road Car Price (₹) Down Payment (₹)

Interest Rate (% per year)

Tenure

Tenure in

₹0

Monthly EMI

₹0

Loan Amount

₹0

Total Interest

₹0

Total Payment

How to Use This Car Loan Calculator

Enter the on-road price of the car (ex-showroom + insurance + registration).
Enter your down payment — the amount you pay upfront. The rest becomes your loan.
Enter the interest rate your bank is offering (e.g. 9.5% per year).
Enter the tenure — how long you'll take to repay (in years or months).
Tap Calculate EMI to see your monthly payment and total cost.

Formula

EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1] where P = loan amount, r = monthly rate (yearly ÷ 12 ÷ 100), n = number of months

Example: A ₹8,00,000 loan at 9.5% for 5 years (60 months) works out to an EMI of about ₹16,798 — total interest paid ≈ ₹2,07,880.

₹1 Lakh Car Loan EMI at Different Rates

Quick reference — the monthly EMI on a ₹1,00,000 loan at common rates. Multiply for your loan size (e.g. an ₹8 lakh loan = EMI below × 8).

Interest Rate	3 Years	5 Years	7 Years
8.0%	₹3,134	₹2,028	₹1,559
9.0%	₹3,180	₹2,076	₹1,609
9.5%	₹3,203	₹2,100	₹1,634
10.0%	₹3,227	₹2,125	₹1,660
11.0%	₹3,273	₹2,174	₹1,712
12.0%	₹3,321	₹2,224	₹1,765

Notice how a longer tenure lowers the EMI but raises the total interest you pay over the life of the loan.

Smart Car Loan Tips

Put down at least 20%. A bigger down payment means a smaller loan, lower EMI and less interest overall.
Keep tenure short. A 3-year loan costs far less in interest than a 7-year one, even though the EMI is higher.
Compare the on-road price, not just EMI. A low EMI over a long tenure can hide a very high total cost.
Check for processing fees. Banks add 0.5%–1% as a one-time charge — factor it into your budget.
Prepay when you can. Paying extra early in the loan cuts interest sharply. Ask if there's a prepayment penalty first.
Don't stretch your budget. A common rule: total EMIs should stay under 40% of your monthly take-home income.

Frequently Asked Questions

What is a car loan EMI?

EMI stands for Equated Monthly Instalment — the fixed amount you pay the bank every month until the loan is fully repaid. It covers both the principal and the interest.

How much down payment should I make?

Most lenders finance 80%–90% of the car's value, so you pay 10%–20% upfront. A larger down payment lowers your EMI and total interest, so put down as much as you comfortably can.

Does a longer tenure reduce my cost?

No. A longer tenure lowers the monthly EMI but increases the total interest you pay. Shorter is cheaper overall — pick the shortest tenure whose EMI you can afford.

What interest rate can I expect on a car loan?

In India, new-car loan rates typically range from about 8% to 12% per year, depending on your bank, credit score and the car. Used-car loans usually carry higher rates.

Does my credit score affect the rate?

Yes. A higher credit score (750+) usually gets you a lower interest rate and faster approval. A weak score can mean a higher rate or a larger down payment requirement.

Can I prepay or foreclose my car loan?

Most banks allow it. Prepaying reduces your interest, especially in the early years. Check whether your lender charges a prepayment or foreclosure fee before you sign.

Is the on-road price different from the ex-showroom price?

Yes. Ex-showroom is the base price. On-road price adds registration, road tax, insurance and any handling charges — it's the actual amount you pay to drive the car home.

Should I take a car loan or pay cash?

If you have the funds and no better use for them, paying cash avoids all interest. But a loan lets you keep savings for emergencies or investments — weigh the loan interest against what your money could earn elsewhere.

This calculator is for estimates only. Actual EMI, fees and rates depend on your lender and profile. For financial decisions, confirm figures with your bank.