What is Car Loan EMI Calculator?
Calculate car loan EMI, total interest payable and amortization schedule for any vehicle loan amount and tenure Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
P = Loan amount (car price − down payment) | r = Monthly interest rate (Annual÷12÷100) | n = Loan tenure in months | Car loans typically range 7-9% for new cars
How to Use This Calculator
- Enter the car price and your down payment amount
- The loan amount is automatically calculated (Price − Down Payment)
- Enter the annual interest rate offered by your bank or dealer
- Select loan tenure in years (1-7 years for car loans)
- Click Calculate to see EMI, total interest, and amortization schedule
Worked Example
Car Price: ₹10,00,000 | Down Payment: ₹2,00,000 | Loan: ₹8,00,000 | Rate: 8.5% | 5 years → EMI: ₹16,422 | Total Interest: ₹1,85,320
Why Use This Tool?
- Know exact EMI before visiting the showroom
- Compare EMI across different down payment amounts
- See how extending tenure reduces EMI but increases total cost
- Calculate if EMI fits within 20% of your monthly income (ideal thumb rule)
Frequently Asked Questions
What is a good down payment for a car loan?
A down payment of 20-30% of the car price is ideal. A higher down payment means lower loan amount, lower EMI, and less total interest. Banks typically require a minimum 10-15% down payment for car loans.
What is the maximum car loan tenure in India?
Most banks offer car loan tenures up to 7 years (84 months). Longer tenures reduce EMI but significantly increase total interest paid. For a ₹8 lakh loan, extending from 5 years to 7 years saves ₹2,100 in EMI but costs ₹50,000 more in interest.
Do car loan interest rates differ for new vs used cars?
Yes. New car loan rates are 7.5-9% p.a. Used car loans are 11-15% p.a. due to higher risk and collateral depreciation. Some manufacturers offer subsidized rates (5-7%) through their financial arms during promotional offers.
Explore more loan & emi calculators or try our other free financial tools.