Car Loan EMI Calculator
Calculate your monthly car loan EMI, total interest payable, and full repayment schedule for new and used vehicles.
Car Loan Parameters
Car loans in India are typically offered for 1-7 years at interest rates between 7% and 16%, depending on the vehicle type, your credit score, and the lender. Unlike home loans, car loans are secured against the vehicle itself. Banks usually finance 80-90% of the on-road price (not ex-showroom), meaning you need a down payment of 10-20%. New car loans have lower interest rates than used car loans. The on-road price includes ex-showroom price, RTO registration charges, insurance, and accessories — always use on-road price when calculating your loan amount. Car loan interest is NOT tax deductible for personal vehicles. Also compare lenders using the Loan Comparison Calculator.
Calculation Summary
| Month / Year | Principal Paid | Interest Paid | Remaining Balance |
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How to Calculate Car Loan EMI
To calculate your car loan EMI, enter the loan amount (the on-road price minus your down payment), the annual interest rate offered by your bank or manufacturer's finance arm, and the loan tenure in years. The result updates instantly as you adjust any slider.
For example: A ₹8 lakh car loan at 9.5% for 5 years results in an EMI of approximately ₹16,738 per month and a total interest payout of ₹2.04 lakh. Use the Prepayment Calculator to see how a lump-sum prepayment can save interest. Compare multiple loan options with the EMI Calculator.
New Car vs Used Car Loan Rates
New car loans: Major banks offer 7.5-12% depending on the car model and borrower profile. Manufacturer-backed financing (e.g., Maruti Finance, Hyundai Finance) sometimes offers special rates for specific models or during festival seasons.
Used car loans: Banks charge 12-18% for used vehicles typically under 5 years old. Older vehicles may not be financed. The higher rate reflects the depreciated asset and higher credit risk. For used car loans, consider keeping the tenure short (2-3 years) to minimize total interest paid.
How Much Down Payment Should You Make?
Financial advisors recommend keeping your car loan EMI below 15% of your monthly take-home pay. For a ₹8 lakh loan at 9.5% for 5 years, the EMI is approximately ₹16,738. This means you'd need a monthly income of at least ₹1,11,600 to comfortably afford it.
A larger down payment of 20-30% reduces both your loan amount and the total interest paid. For example, increasing your down payment from ₹80,000 (10%) to ₹2,40,000 (30%) on an ₹8 lakh on-road vehicle reduces your loan to ₹5.6 lakh — saving approximately ₹1.43 lakh in interest over 5 years at 9.5%. Use the Loan Comparison tool to compare scenarios.
Car Loan EMI Formula
The standard EMI formula used by all banks:
For a ₹8,00,000 car loan at 9.5% for 5 years: r = 9.5/12/100 = 0.007917, n = 60. EMI = 8,00,000 × 0.007917 × (1.007917)⁶⁰ / ((1.007917)⁶⁰ − 1) ≈ ₹16,738.
Amortization Schedule
A car loan amortization schedule shows you exactly how each monthly EMI is split between principal repayment and interest. In the early months, more of your EMI goes toward interest. By month 30 (midpoint of a 5-year loan), roughly equal amounts go toward principal and interest.
Toggle between Monthly and Yearly views to track your outstanding balance, and download the full schedule as a CSV file for budgeting and tax records.