Car Loan EMI Calculator
Compare your down payment, monthly EMI and total financing cost.
Loan required ₹8,00,000
Outstanding loan balance
The balance falls as principal is repaid. Processing fees are shown separately from loan interest.
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Compare the finance offer, not only the instalment
Use the on-road price if it includes the purchase charges you intend to finance. A bigger down payment reduces the amount borrowed. Dealer cash discounts, processing fees and compulsory add-ons can make two apparently similar car-finance offers cost different amounts. Ongoing fuel, maintenance, annual insurance renewals and depreciation are outside the loan schedule.
A practical example
For a car costing Rs 10 lakh on-road, a 20% down payment leaves Rs 8 lakh to finance. Compare offers with the same principal and tenure. A dealer quote using a flat interest rate cannot be compared directly with a reducing-balance rate: ask for the lender cash-flow schedule and total charges.
How the EMI calculation works
EMI = P × r ÷ [1 − (1 + r)^(−n)]P is the principal, r is the annual nominal rate divided by 1,200, and n is the number of months. At zero interest, EMI = P ÷ n. The schedule rounds payments and monthly interest to paise, applies prepayments after the EMI, and adjusts the final instalment to clear the balance. It assumes a constant rate, monthly intervals and no moratorium. Daily accrual, disbursement timing and lender rounding can cause differences.
Fees and the effective annual rate
The effective annual rate discounts baseline instalments against the principal less upfront fees, then annualizes the monthly result by compounding. It excludes prepayments because those are optional future cash flows. Compare the result with your lender's Key Facts Statement, which should disclose the applicable annual percentage rate, fees and repayment terms.
Car Loan EMI Calculator: Frequently Asked Questions
Can I calculate car loan prepayment and the repayment schedule?
The advanced repayment model applies the extra payments you specify after the scheduled EMI and recalculates the remaining loan. The resulting schedule is an illustration; the lender's rules determine which part-payments and foreclosure charges apply.
What inputs determine car loan EMI?
The financed amount, annual reducing-balance rate and repayment months determine the EMI. When using a purchase price, deduct the down payment first. Include only costs actually being financed in the principal.
How does a larger car down payment affect EMI?
At the same interest rate and tenure, a larger down payment reduces borrowing, EMI and total loan interest. It also requires more cash upfront; the calculator does not decide how much emergency savings to retain.
Can I calculate EMI for a used car?
Yes, if the finance offer uses regular reducing-balance monthly installments. Enter the used-car loan amount, quoted rate and tenure. Do not assume that new-car and used-car finance have identical terms.
Does car loan EMI include fuel and servicing?
No. The estimate covers loan repayment, not the full cost of owning the vehicle. Fuel, servicing, parking, annual insurance renewals and depreciation need a separate budget.
More questions (6)
Should I choose a five-year or seven-year car loan?
A longer term generally lowers EMI but increases interest at the same positive rate. Compare the total repayment and how long the debt will remain outstanding, not only whether the monthly payment fits.
Is a zero-interest car loan always free financing?
Not necessarily. Processing costs, mandatory add-ons or a cash discount lost by taking finance may still create a cost. At zero entered interest, the model divides principal by months and accounts separately for entered fees.
Does the calculator model a trade-in vehicle?
It does not value a trade-in. A confirmed trade-in amount can form part of the upfront contribution after accounting for any outstanding old loan. Use the actual remaining borrowing requirement.
Should I enter ex-showroom or on-road price?
Enter the total purchase price you want to split between down payment and financing. If registration or insurance is not financed, keep it outside the financed price and budget it separately.
Can this calculate a balloon-payment car loan?
No. This schedule assumes regular monthly instalments that fully repay the loan. Balloon payments, residual values, leases and deferred instalments need a different cash-flow model.
What about a flat-rate dealer offer?
The calculator uses monthly reducing-balance interest. A flat rate applies interest to the original amount throughout the term and is not interchangeable with the rate entered here. Ask the dealer for the reducing-balance equivalent and all-in charges.