🚗 Car Loan
Car Loan EMI Calculator
Your Monthly EMI
₹16,607
for 60 months
- Total Interest
- ₹1,96,401
- Total Payment
- ₹9,96,401
- Principal + Interest
Break-up of Total Payment
Download or share this calculation
The shared link opens with all your numbers pre-filled — handy for comparing offers with family or your bank.
Principal vs Interest Paid Each Year
EMI payments starting from …
EMI Payment Schedule
Tap a year to see its month-by-month breakdown.
| Year | Principal (A) | Interest (B) | Total Payment (A + B) | Balance | Loan Paid To Date |
|---|
What If the Interest Rate Changes?
Floating-rate loans move with RBI policy. See how your EMI shifts if the rate falls or rises by up to 2%.
7%
₹15,841
−₹766 / month
Interest: ₹1,50,458
8%
₹16,221
−₹386 / month
Interest: ₹1,73,267
9% · current
₹16,607
per month
Interest: ₹1,96,401
10%
₹16,998
+₹391 / month
Interest: ₹2,19,858
11%
₹17,394
+₹787 / month
Interest: ₹2,43,636
What is EMI?
An Equated Monthly Instalment (EMI) is the fixed amount you pay your lender every month until your loan is fully repaid. Each EMI has two parts: interest on the balance still outstanding, and a portion that reduces the principal. Because interest is charged on the outstanding balance, it takes up most of the EMI in the early months. As the balance falls, the interest part shrinks and more of each EMI goes towards the principal — even though the EMI itself never changes.
Buying a new or used car? Calculate the monthly EMI, total interest and repayment schedule for your car loan. Car lenders sometimes collect EMIs in advance rather than in arrears — switch between the two to see exactly how it changes your EMI.
EMI Formula
E = P × r × (1 + r)n ÷ [(1 + r)n − 1]
- E — EMI (monthly instalment)
- P — principal loan amount
- r — monthly interest rate = annual rate ÷ 12 ÷ 100 (10.5% p.a. → 0.00875)
- n — loan tenure in months
Example: borrow ₹10,00,000 at 10.5% a year for 10 years (120 months). EMI = 10,00,000 × 0.00875 × (1.00875)120 ÷ [(1.00875)120 − 1] = ₹13,493. Over 120 months you pay ₹16,19,220 in total, of which ₹6,19,220 is interest. Doing this by hand for every combination of amount, rate and tenure is slow and error-prone — the calculator above does it instantly and also builds the full repayment schedule.
Car Loan EMI Example
For an ₹8 lakh car loan at 9% for 5 years with EMI in arrears, the EMI is ₹16,607 and total interest is ₹1,96,401.
With EMI in advance, the first instalment is paid on the day the loan is disbursed, so the EMI falls slightly to ₹16,483 and total interest to ₹1,88,984. The trade-off is that the first EMI comes out of your pocket at purchase, effectively increasing your down payment.
How to Use This EMI Calculator
- 1Choose the loan type — Home, Personal or Car.
- 2Set the loan amount, annual interest rate and tenure with the sliders, or type exact values in the boxes. Switch tenure between years (Yr) and months (Mo).
- 3For car loans, pick EMI in arrears or EMI in advance.
- 4Read your monthly EMI, total interest and total payment, plus the principal-vs-interest break-up chart.
- 5Set the month of your first EMI and choose calendar-year or financial-year view to see the payment schedule. Tap any year to expand it month by month.
- 6Download the schedule as PDF or Excel, or share a link with all your numbers pre-filled.
Planning for Floating Rates
You decide the loan amount and tenure, but on a floating-rate loan the interest rate moves with RBI policy and your lender's benchmark. Before you commit, check two scenarios:
- Rates fall 1–3%: your EMI drops, or you can keep the same EMI and close the loan sooner.
- Rates rise 1–3%: could you still pay comfortably? On a long home loan, even a 2% rise noticeably increases the EMI for the rest of the tenure.
The “What If the Interest Rate Changes?” panel above shows both cases for your numbers. Plan for the worst case and treat the best case as a bonus.
Tips to Lower Your Car Loan Cost
- Make at least a 15–20% down payment — cars depreciate quickly, and a smaller loan keeps you from owing more than the car is worth.
- Keep the tenure to 5 years or less where possible; long car loans add interest on a depreciating asset.
- Compare dealer-arranged finance with your own bank's offer — dealer 'zero interest' schemes often build the cost into the price or fees.
- Ask whether EMIs are in advance or arrears so you compare offers on the same basis.
Frequently Asked Questions
What is EMI in advance vs EMI in arrears?＋
With EMI in arrears (the usual method), your first EMI is due one month after the loan is disbursed. With EMI in advance, the first EMI is paid at the time of disbursal, so you make one payment upfront. Because the lender gets money earlier, the EMI and total interest are slightly lower in the advance method.
What is the maximum car loan tenure?＋
Banks in India typically offer new-car loans for up to 7 years, and some go up to 8 years. Used-car loans usually have shorter tenures. This calculator supports up to 8 years.
Does the car loan EMI include insurance and registration?＋
No. The EMI covers only the loan principal and interest. On-road costs such as insurance, registration and road tax are usually paid upfront, unless your lender funds them as part of the loan amount — in that case, include them in the loan amount above.
Is a car loan interest rate fixed?＋
Most car loans in India are fixed-rate, so your EMI stays constant for the whole tenure. Some banks also offer floating-rate car loans — use the rate scenarios on this page to see how a change would affect you.
More Calculators
Figures are indicative and calculated using the standard reducing-balance method. Your lender's actual EMI, fees and schedule may differ. This page is for information only and is not financial advice.