Car Loan EMI Calculator: Plan Your Monthly Instalment

Before buying a car, know exactly what the loan will cost each month. This calculator shows the EMI and total interest.

What is it?

A car loan is a fixed-tenure loan, usually 3-7 years, with the vehicle as security. Rates are higher than home loans.

How is it calculated?

EMI = P × i × (1+i)ⁿ ÷ [(1+i)ⁿ − 1], where P is the loan amount, i the monthly rate and n the months.

Example

₹8 lakh at 9.5% over 5 years gives an EMI of about ₹16,798 and total interest of roughly ₹2.08 lakh.

Key things to know

• A larger down payment reduces interest sharply.
• Shorter tenure means higher EMI but far less interest.
• Factor in insurance and maintenance, not just the EMI.
• Compare on-road price, not just ex-showroom.

What to do next

Compare car-loan rates from banks before finalising.

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Frequently asked questions

What tenure is best?
The shortest you can comfortably afford.

Is a car loan tax-deductible?
Only for business use, not personal.

Can I prepay?
Usually yes; check for any foreclosure charge.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.