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CAR LOAN
CALCULATOR

A car loan is a type of financing that helps you purchase a vehicle by borrowing money from a lender. The loan is repaid in EMIs (Equated Monthly Installments), which include both principal and interest. Car loan interest rates vary based on credit score, loan tenure, and lender policies. It allows you to own a car without paying the full price upfront. Use our car loan calculator to estimate your EMIs and choose the best financing option!

Loan Amount
(₹)

Interest Rate
(%)

Total Payment

₹127,482

Loan Tenure
(yrs)

Month
EMI
Principal Paid (₹)
Interest Paid (₹)
Remaining Balance (₹)
1
₹2,125
₹1,291
₹833
₹98,709
2
₹2,125
₹1,302
₹823
₹97,406
3
₹2,125
₹1,313
₹812
₹96,094
4
₹2,125
₹1,324
₹801
₹94,770
5
₹2,125
₹1,335
₹790
₹93,435
6
₹2,125
₹1,346
₹779
₹92,089
7
₹2,125
₹1,357
₹767
₹90,731
8
₹2,125
₹1,369
₹756
₹89,363
9
₹2,125
₹1,380
₹745
₹87,983
10
₹2,125
₹1,392
₹733
₹86,591
11
₹2,125
₹1,403
₹722
₹85,188
12
₹2,125
₹1,415
₹710
₹83,773
13
₹2,125
₹1,427
₹698
₹82,347
14
₹2,125
₹1,438
₹686
₹80,908
15
₹2,125
₹1,450
₹674
₹79,458
16
₹2,125
₹1,463
₹662
₹77,995
17
₹2,125
₹1,475
₹650
₹76,520
18
₹2,125
₹1,487
₹638
₹75,033
19
₹2,125
₹1,499
₹625
₹73,534
20
₹2,125
₹1,512
₹613
₹72,022
21
₹2,125
₹1,525
₹600
₹70,497
22
₹2,125
₹1,537
₹587
₹68,960
23
₹2,125
₹1,550
₹575
₹67,410
24
₹2,125
₹1,563
₹562
₹65,847
25
₹2,125
₹1,576
₹549
₹64,271
26
₹2,125
₹1,589
₹536
₹62,682
27
₹2,125
₹1,602
₹522
₹61,080
28
₹2,125
₹1,616
₹509
₹59,464
29
₹2,125
₹1,629
₹496
₹57,835
30
₹2,125
₹1,643
₹482
₹56,192
31
₹2,125
₹1,656
₹468
₹54,536
32
₹2,125
₹1,670
₹454
₹52,865
33
₹2,125
₹1,684
₹441
₹51,181
34
₹2,125
₹1,698
₹427
₹49,483
35
₹2,125
₹1,712
₹412
₹47,771
36
₹2,125
₹1,727
₹398
₹46,044
37
₹2,125
₹1,741
₹384
₹44,303
38
₹2,125
₹1,756
₹369
₹42,548
39
₹2,125
₹1,770
₹355
₹40,778
40
₹2,125
₹1,785
₹340
₹38,993
41
₹2,125
₹1,800
₹325
₹37,193
42
₹2,125
₹1,815
₹310
₹35,378
43
₹2,125
₹1,830
₹295
₹33,548
44
₹2,125
₹1,845
₹280
₹31,703
45
₹2,125
₹1,861
₹264
₹29,843
46
₹2,125
₹1,876
₹249
₹27,967
47
₹2,125
₹1,892
₹233
₹26,075
48
₹2,125
₹1,907
₹217
₹24,167
49
₹2,125
₹1,923
₹201
₹22,244
50
₹2,125
₹1,939
₹185
₹20,305
51
₹2,125
₹1,955
₹169
₹18,349
52
₹2,125
₹1,972
₹153
₹16,378
53
₹2,125
₹1,988
₹136
₹14,389
54
₹2,125
₹2,005
₹120
₹12,385
55
₹2,125
₹2,022
₹103
₹10,363
56
₹2,125
₹2,038
₹86
₹8,325
57
₹2,125
₹2,055
₹69
₹6,269
58
₹2,125
₹2,072
₹52
₹4,197
59
₹2,125
₹2,090
₹35
₹2,107
60
₹2,125
₹2,107
₹18
₹-0

Monthly EMI

Total Interest

₹2,125

₹27,482

How to use Car Loan Calculator?

Loan Amount (Principal):  

  • Enter the amount you plan to borrow for your car loan.

  • You can either type the amount manually or use the slider to adjust the value.

  • Example: If you want to borrow ₹5,00,000, type "500000" or slide to the nearest amount.

Interest Rate (Annual %):

  • Input the annual interest rate offered by your bank or lender.

  • You can type the percentage manually or use the slider for adjustment.

  • Example: If the bank offers a 9.5% interest rate, enter "9.5" in the box.

Loan Tenure (Years):

  • Enter the number of years you want to take to repay the loan.

  • Choose from 1 to 40 years using the input box or slider.

  • Example: If you want a 5-year loan term, enter "5".

View EMI Calculation:

  • Monthly EMI (Equated Monthly Installment) – The fixed amount you need to pay every month.

  • Total Interest Payable – The total interest you will pay over the loan tenure.

  • Total Payment Amount – The total cost of the loan (Principal + Interest).

Check Amortization Schedule:

Once all inputs are provided, the calculator will display:

  • How much of each EMI goes toward interest and principal repayment.

  • The remaining loan balance after each month.

  • A year-wise breakdown of payments.

View Visual Representation:

To make it easier to understand, the calculator also displays a Pie Chart showing:

  • Principal Amount Paid (Total loan amount you borrowed)

  • Interest Paid (Total extra amount paid to the bank)

Adjust & Compare Different Scenarios:

  • Change the loan amount, interest rate, or tenure to see how your EMI changes.

  • Lowering the tenure will increase the EMI but reduce total interest.

  • Increasing the tenure will reduce EMI but increase total interest paid.

What is a Car Loan EMI Calculator, and How Does It Work?

A Car Loan EMI Calculator is an online financial tool that helps users estimate their monthly Equated Monthly Installment (EMI) before taking out a car loan. It calculates the EMI based on three main factors:

​

  • Loan Amount (Principal): The amount you borrow from the lender.

  • Interest Rate: The rate at which interest is charged on the loan.

  • Loan Tenure: The duration (in months or years) over which the loan is repaid.

 

How It Works:

  1. Enter the loan amount (e.g., ₹5,00,000).

  2. Enter the interest rate (e.g., 8% per annum).

  3. Enter the loan tenure (e.g., 5 years).

  4. The calculator instantly computes the EMI, total interest, and total payment.

  5. It also provides an amortization schedule, showing how much of each EMI goes toward interest and principal repayment over time.

 

This tool helps borrowers plan their budget effectively and decide on an affordable EMI before applying for a loan.

What Factors Affect My Car Loan EMI?

Several factors determine how much EMI you will pay each month:

​

1. Loan Amount (Principal)

  • Higher loan amounts result in higher EMIs.

  • If you increase your down payment, the principal amount reduces, leading to lower EMIs.

 

2. Interest Rate (%)

  • A higher interest rate increases the EMI.

  • Different banks and lenders offer different rates, so comparing options is crucial.

  • A good credit score (750+ in India) can help you get a lower interest rate.

 

3. Loan Tenure (Years/Months)

  • Longer tenure → Lower EMI, but more interest paid over time.

  • Shorter tenure → Higher EMI, but less total interest.

 

4. Processing Fees & Other Charges

  • Some lenders charge processing fees that may impact the overall cost of the loan.

How Can I Reduce My Car Loan EMI?

If the EMI seems high, there are several ways to lower it:

 

1. Choose a Longer Tenure

  • If the EMI is too high, opting for a longer loan tenure (e.g., 7 years instead of 5 years) reduces monthly payments.

  • Downside: A longer tenure increases the total interest paid.

 

2. Increase Your Down Payment

  • Paying a higher down payment reduces the loan amount and results in lower EMIs.

  • Many banks finance up to 80-90% of the car’s value, so if you pay more upfront, your EMI decreases.

 

3. Compare Interest Rates

  • Different banks and NBFCs (Non-Banking Financial Companies) offer varying rates.

  • A lower interest rate directly reduces EMI.

 

4. Make Part-Prepayments

  • If your lender allows prepayment without penalties, making extra payments towards the loan reduces the principal, leading to lower EMIs.

What is an Amortization Schedule in a Car Loan?

An amortization schedule is a table that shows the breakdown of your EMI over the entire loan tenure.

 

How It Helps You:

  • Shows how much of each EMI goes toward interest and principal.

  • Helps in planning prepayments—you can see when paying extra makes the most impact.

  • Allows borrowers to track their outstanding loan balance.

Can I Prepay My Car Loan? Will It Reduce My EMI?

Yes, most banks allow prepayment (either full or partial).

 

1. Partial Prepayment (Reducing Loan Balance)

  • If you receive a bonus or extra savings, you can make a lump sum prepayment.

  • This reduces the principal and can either:
    ✅ Reduce EMI (keeping tenure the same)
    ✅ Reduce Tenure (keeping EMI the same)

 

2. Full Prepayment (Closing the Loan Early)

  • If you have enough funds, you can completely pay off your loan before tenure completion.

  • Check if there are prepayment charges (some lenders charge 2-5%).

 

Benefits of Prepayment:

  • Reduces total interest cost over time.

  • Frees up monthly income for other expenses.

 

Things to Check Before Prepaying:

  1. Does your lender charge prepayment penalties?

  2. How much interest will you save by prepaying early?

  3. Should you reduce EMI or shorten tenure?

How is Car Loan EMI Calculated?

The EMI (Equated Monthly Installment) is calculated using the following standard formula:

emi_formula.png

Where:

  • P = Principal Loan Amount

  • r = Monthly Interest Rate (Annual Interest Rate ÷ 12 ÷ 100)

  • n = Loan Tenure in Months (Years × 12)

Example Calculation:

Let's say you take a ₹6,00,000 car loan at an interest rate of 9% per annum for a tenure of 5 years (60 months).

​

1. Convert Interest Rate to Monthly Rate:

interest_rate_conversion.png

2. Convert Loan Tenure to Months:

3. Apply the EMI Formula:

emi_formula_exact.png

So, you will pay ₹12,456 per month for 60 months.

Get the best car loan deals! Calculate your EMI now with our easy-to-use car loan calculator.

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