Car Loan Calculator

Calculate your car loan EMI, total interest, and get complete amortization schedule. Plan your car purchase smartly.

Car Loan Details

Car Price (On-Road)

₹

Down Payment (20.0%)

₹

Interest Rate (% p.a.)

Loan Tenure (Years)

Loan Amount

₹8.00 L

Monthly EMI

₹16.41 K

Total Interest

₹1.85 L

LTV Ratio

80.0%

Tip: A higher down payment reduces your loan amount and total interest. Banks typically fund up to 90% of car value (LTV ratio of 90%). Consider prepaying when possible to save on interest.

Loan Summary

₹16.41 KMonthly EMI

Car Price₹10.00 L

Down Payment₹2.00 L

Loan Amount₹8.00 L

Total Interest₹1.85 L

Total Cost₹11.85 L

₹16.41 K

Monthly EMI

₹8.00 L

Loan Amount

₹1.85 L

Total Interest

60

Total EMIs

Year-wise Amortization Schedule

Year	Principal	Interest	Total Paid	Balance
Year 1	₹1.34 L	₹62.85 K	₹1.97 L	₹6.66 L
Year 2	₹1.46 L	₹51.00 K	₹1.97 L	₹5.20 L
Year 3	₹1.59 L	₹38.10 K	₹1.97 L	₹3.61 L
Year 4	₹1.73 L	₹24.06 K	₹1.97 L	₹1.88 L
Year 5	₹1.88 L	₹8.78 K	₹1.97 L	₹0

What is Car Loan Calculator, and How Does it Help You

Purchasing a vehicle is a major milestone that usually involves securing a car loan. To ensure that your monthly car payment doesn't strain your budget, calculating the monthly installment in advance is essential. It helps you decide the correct downpayment and tenure.

The Car Loan Calculator allows you to quickly estimate your monthly EMIs, total interest payable, and the total cost of buying a vehicle. This enables you to plan your downpayment and choose a loan tenure that fits your budget.

Downpayment Planning

Adjust loan amounts to find the right balance between downpayment and EMI size.

Amortization Breakdown

Analyze how your payments are split between principal and interest month-by-month.

Interest Impact View

See how minor changes in interest rates alter the overall cost of vehicle ownership.

How Does the Car Loan Calculator Work?

The calculator computes your monthly EMI using the standard compound interest reducing balance formula.

EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]

P: Principal loan amount (On-road price minus downpayment)

r: Monthly interest rate (annual rate / 12 / 100)

n: Repayment tenure in months

EMI: Equated Monthly Installment

If you buy a car and require a loan of ₹6,00,000 at an annual interest rate of 9% p.a. for a tenure of 5 years (60 months), the calculator computes a monthly EMI of ₹12,455. The total interest paid over 5 years is ₹1,47,300, and the overall repayment amount is ₹7,47,300.

How to Use Car Loan Calculator

Using the Car Loan Calculator is extremely simple and takes just a few seconds. Follow these steps:

Enter Loan Amount

Use the slider or input box to set the total loan amount needed after your downpayment.

Set Interest Rate

Input the annual interest rate offered by the lender/dealership.

Select Tenure

Set the repayment duration (in years or months) to instantly calculate your EMI.

Advantages of Using Car Loan Calculator

✓ Accurate Loan Budgeting

Ensure you don't overstretch your monthly finances by matching your budget to the correct EMI.

✓ Smarter Dealership Checks

Verify the finance calculations offered by dealers and banks to avoid hidden fees.

✓ Optimized Repayments

Experiment with different downpayments and tenures to minimize interest expenses.

✓ Complete Cost Clarity

Know exactly how much extra you are paying in interest compared to the car's cash price.

Frequently Asked Questions

Car loan interest rates in India typically range from 7% to 14% per annum, depending on the lender, your credit score, and loan tenure. Banks usually offer 7-10% for new cars, while NBFCs may charge 10-14%. Used car loans have higher rates (10-16%).

While banks finance up to 90-100% of the car's on-road price, it's recommended to pay at least 20% as down payment. Higher down payment means lower EMI, less interest paid, and better loan terms. For expensive cars, consider 25-30% down payment.

Most banks offer car loan tenure from 1 to 7 years. Some lenders offer up to 8 years for new cars. While longer tenure reduces EMI, it significantly increases total interest paid. 3-5 years is considered optimal for most borrowers.

Most banks don't charge prepayment penalty on car loans taken at floating interest rates (as per RBI guidelines). However, fixed-rate loans may have prepayment charges of 2-5%. Check your loan agreement for specific terms.

LTV (Loan-to-Value) ratio is the percentage of car value that the bank finances. For new cars, LTV can be up to 90-100%. For used cars, it's typically 70-85%. Lower LTV (higher down payment) results in better interest rates and lower EMI.

Credit score significantly impacts car loan rates: 750+ score gets best rates (8-9%), 700-750 gets moderate rates (9-11%), below 700 may face higher rates (11-14%) or rejection. Improve your score before applying for better terms.

Required documents include: (1) Identity proof (Aadhaar, PAN, Passport) (2) Address proof (3) Income proof - salary slips (3 months), bank statements (6 months), ITR for self-employed (4) Employment proof (5) Car quotation from dealer (6) Passport photos.

Bank loans usually offer lower interest rates (7-10%) compared to dealer financing (9-14%). However, dealers may offer promotional rates or processing fee waivers. Compare total cost including all charges before deciding.

Flat rate charges interest on original loan amount throughout tenure, making it expensive. Reducing/diminishing rate charges interest only on outstanding balance, reducing as you pay EMIs. Most car loans use reducing rate. A 10% flat rate equals approximately 17-18% reducing rate.

Yes, banks and NBFCs offer used car loans, but with stricter terms: (1) Higher interest rates (10-18%) (2) Lower LTV ratio (70-85%) (3) Shorter tenure (up to 5 years) (4) Car age restrictions (usually not older than 5-7 years at loan end).

Missing EMIs leads to: (1) Late payment charges (1-2% of EMI) (2) Negative impact on credit score (3) After 3 consecutive defaults, bank may initiate vehicle repossession (4) Legal action for recovery. Contact your bank immediately if you face payment difficulties.

For personal car loans, the interest is NOT tax deductible. However, if you're self-employed or use the car for business purposes, you can claim depreciation and interest as business expenses. Maintain proper records to claim these deductions.