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Car Loan EMI Calculator

Car Loan EMI Calculator

What will your car loan really cost each month?

₹
%
Years Months Days
%/yr
Monthly EMI
₹0
Total interest
₹0
over the full tenure
Total you repay
₹0
principal + interest
Car's value at loan end
₹0
what the asset is worth by then
How your total repayment splits

Standard reducing-balance EMI, the method every Indian bank and NBFC uses for car loans. The "value at loan end" card depreciates the loan amount (a proxy for the car's price) at the rate you set — it exists to show the gap between what you repay and what the car is worth by the time it's yours outright.

Tax: a car loan for personal use gives you no tax benefit — no deduction on interest or principal, in either regime. The exceptions: if the car is used for business or professional purposes, the interest and depreciation are deductible as business expenses; and the old §80EEB electric-vehicle interest deduction (up to ₹1.5L) applied only to EV loans sanctioned between April 2019 and March 2023, so it's unavailable for new loans. Compare against the US version of this calculator for how differently the two markets price money.

What to work out next

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Emergency Fund Calculator

Size your safety net and see how fast you can build it.

Income Tax Calculator

Compare the old and new tax regimes side by side.

Flat vs Reducing Rate EMI Calculator

See the true effective rate hiding behind a "flat rate" loan.

Frequently asked questions

What is EMI and how is it calculated?

EMI (Equated Monthly Installment) is the fixed monthly payment that repays a loan over its tenure, made up of principal and interest combined. It's calculated from the loan amount, interest rate, and tenure using a standard amortization formula -- the same one this calculator uses, so you can see the exact monthly figure and how much of each payment goes to interest versus principal.Read more: The Insurance Hiding Inside Your Car Loan

Does prepaying a loan actually save money?

Yes, almost always -- a prepayment reduces the outstanding principal, which reduces the interest charged on every remaining installment. The earlier in the loan you prepay, the more you save, since interest is front-loaded in most amortization schedules. Check for prepayment penalties with your lender first.Read more: The Credit Card Minimum Due Is Designed to Keep You Paying Forever

What's the difference between flat rate and reducing balance interest?

Flat-rate interest is charged on the full original loan amount for the entire tenure, even as you pay it down -- reducing-balance interest is charged only on what's still outstanding, so it falls every month as you repay. A flat rate quoted at the same percentage as a reducing-balance rate is effectively much more expensive; always confirm which method a lender is using.Read more: Rate Hikes Travel First Class, Rate Cuts Walk

Will improving my credit score lower my loan interest rate?

Usually, yes. Lenders price risk into the interest rate they offer, and a higher credit score signals lower risk, which typically qualifies you for better rates. It varies by lender and loan type, but it's one of the few loan-cost factors largely within your control before you apply.Read more: The Conversion Fee: Paying Your Bank to Stop Overcharging You

Estimates only, not financial advice. See our Disclaimer.