Car Loan EMI Calculator
Price the car by its monthly instalment, not the sticker — EMI, total interest and the year-wise balance for any down-payment scenario.
Year-wise repayment
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹1,31,948 | ₹68,499 | ₹6,68,052 |
| 2 | ₹1,44,684 | ₹55,763 | ₹5,23,368 |
| 3 | ₹1,58,650 | ₹41,797 | ₹3,64,718 |
| 4 | ₹1,73,963 | ₹26,484 | ₹1,90,755 |
| 5 | ₹1,90,755 | ₹9,692 | ₹0 |
Price the car by its monthly cost
When you finance a car, the sticker price is only half the story — the loan adds its own cost on top, and the showroom quote rarely spells it out. A ₹8 lakh loan can add ₹2 lakh of interest over five years, which is real money that belongs in your buying decision alongside the variant and the colour.
This calculator gives you the honest figure: the monthly EMI, total interest, total payment and a year-wise schedule of the balance. Run it before you visit the dealership so the finance desk is confirming your numbers, not creating them.
The EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P — the loan amount (principal)
- r — the monthly interest rate: annual rate ÷ 12 ÷ 100
- n — the number of monthly instalments (tenure in months)
This is the reducing-balance convention every bank uses: interest accrues each month on the balance still outstanding, so early EMIs are interest-heavy and later ones repay mostly principal. At a zero rate the EMI degrades to a flat principal split. The year-wise schedule under the widget buckets the instalments into 12-month windows whose closing balance lands exactly on zero.
How to use this calculator
- Enter the car loan amount — ₹1 lakh to ₹1 crore. This is the financed portion: on-road price minus your down payment and any exchange value.
- Set the interest rate (5–20% p.a.; new-car loans from banks currently cluster around 8.5–10.5%, used-car loans run higher).
- Set the loan tenure in years and months — car loans here run up to 8 years.
- Read the monthly EMI, total interest and total payment.
- Check the year-wise repayment table — useful if you plan to sell or exchange the car mid-loan, since it shows the balance you would need to clear each year.
A worked example
₹8,00,000 at 9.25% p.a. for 5 years:
- Monthly EMI: ₹16,703.92 for 60 months
- Total interest: ₹2,02,235.12 — about a quarter of the loan again
- Total payment: ₹10,02,235.12
If ₹8 lakh of financing turns into ₹10 lakh of repayments, the loan itself is one of the costlier "accessories" on the car — worth negotiating as hard as the price.
Shorter tenure, cheaper car
Cars depreciate while loans amortise, so long car loans risk owing more than the car is worth. The same ₹8,00,000 at 9.25% costs ₹2,02,235.12 in interest over 5 years, but only ₹1,19,186.95 over 3 years (EMI ₹25,532.97) — a saving of about ₹83,048 for a higher monthly outgo.
A common rule of thumb is to keep the tenure at or under 5 years and put down at least 20%. Use the down payment calculator linked below to see how the upfront amount changes the total cost of the purchase.
Lenders typically finance a percentage of the on-road price, which includes registration, road tax and insurance on top of the ex-showroom figure. Financing everything maximises the loan and the interest; paying the on-road extras from your own pocket keeps the loan tied to the car's actual value. Enter the amount you actually intend to borrow.
Not for a personally used car. If the vehicle is used for business or profession, the interest and depreciation can be claimed against business income in proportion to business use. The Section 80EEB deduction for electric-vehicle loan interest applied only to loans sanctioned up to 31 March 2023 and has lapsed for new loans.
Most banks offer 1 to 7 years on new cars, with some stretching to 8; used-car loans are usually capped shorter, at 5 years or less. This calculator handles tenures up to 8 years. Remember that a long tenure on a depreciating asset means several years where the outstanding loan exceeds the car's resale value.
Rarely. The cost usually reappears as a processing fee, a mandatory accessory pack, or the loss of the cash discount you would get on an outright or bank-financed purchase. Compare the total outflow under the scheme against the discounted cash price plus a normal loan from this calculator.
Yes — rates on used cars typically run 2–5 percentage points above new-car rates, and the loan-to-value offered is lower. The maths here works the same; just enter the higher rate your lender quotes.