Car Loan EMI Calculator
Calculate the EMI on a new or used car loan, the total interest over the tenure, and the savings from paying extra. Free, in rupees.
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About the Car Loan EMI Calculator
Car loans in India usually run 3 to 7 years and cover most of the on-road price. A longer tenure lowers the EMI, but you pay interest for longer, and the car loses value faster than the loan is repaid in the early years.
This calculator uses the standard amortisation formula that banks use for fixed-rate loans: interest is charged each month on the remaining balance, and each payment covers that interest plus a growing share of the principal. The yearly schedule shows how the balance falls over time. Try different rates and terms to see the trade-off: a longer term lowers the monthly payment but usually adds a lot more interest in total. The example uses ₹8 lakh at 9% for 5 years; enter the loan amount after your down payment and the rate from the dealer or bank. Compare 5 and 7 years to see what the lower EMI really costs.
How to use the Car Loan EMI Calculator
- 1
Enter the amount you want to borrow, in any currency.
- 2
Enter the yearly interest rate and the term in years or months.
- 3
Read the monthly payment, total interest and total paid, and scroll the schedule to see the balance year by year.
- 4
Planning to prepay? Add an extra monthly amount, a yearly lump sum or a one-time payment, and choose whether to finish sooner or lower the EMI. The interest saved appears at once.
- 5
Switch the schedule to months for every EMI, or download it as a CSV file for Excel or Google Sheets.
Examples
800,000 at 9% for 5 yearsMonthly payment: 16,606.68
Total interest: 196,401.05
Total paid: 996,401.05Good to know
- Assumes a fixed rate, monthly payments and interest charged monthly at the yearly rate ÷ 12. Variable rates, interest-only periods and balloon payments are not modelled.
- Fees, insurance, taxes and early repayment charges are not included, so the real cost of a loan may be higher. Lenders’ quoted APR includes some of these.
- Results are rounded to two decimal places; the final payment absorbs any rounding difference.
Frequently asked questions
Should I pick a longer tenure for a lower EMI?
Only if the EMI would otherwise strain your budget. A longer tenure adds interest for every extra year, and many car loans charge for early closure, so a shorter tenure is usually cheaper overall.
What is an EMI?
An equated monthly instalment: the same payment every month for the whole term. Early payments are mostly interest; later ones are mostly principal.
How is the monthly payment calculated?
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r the monthly rate (yearly rate ÷ 12 ÷ 100) and n the number of months.
Should I use a prepayment to cut the tenure or the EMI?
Cutting the tenure saves more interest, because the balance falls faster while you keep paying the same EMI. Lowering the EMI frees up money each month but saves less. Try both in the calculator to see the difference for your loan.
Does a shorter term save money?
Usually, yes. The monthly payment is higher, but you pay interest for fewer months, so the total interest is lower.
Is anything I enter saved?
No. Calculations run on your device and nothing is stored or sent.
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