Car Loan Calculator
A car loan EMI is the fixed monthly instalment that repays a vehicle loan with interest. Enter the car price, your down payment and any trade-in, fees added to the loan, the interest rate and the tenure to see the loan amount, your monthly EMI, the total interest, the total repayment and a year-by-year schedule. Actual lender terms can differ, so use it to compare offers.
- Free to use
- No sign-up required
- Runs in your browser
Your result
Enter the vehicle and loan details and select Calculate payment.
Monthly payment
–
- Amount financed–
- Total interest–
- Total of loan payments–
- Total cost of the vehicle–
- Share of price financed–
- Amount financed–
- Interest–
Year-by-year repayment schedule
| Year | Interest paid | Principal repaid | Balance left |
|---|
Rounded to two decimal places. Assumes a fixed rate, equal monthly payments and no balloon payment.
Please note: this estimates a standard fixed-rate, equal-payment loan from the figures you enter. It is not a quote or an offer of credit. Real agreements can include balloon payments, insurance, taxes, registration and other charges that change the figures. Confirm the final numbers in the lender's written agreement. This is general information, not financial advice.
Get Your Detailed Car Loan Report
Your full loan breakdown, year-by-year repayment, principal vs interest, and rate and tenure comparisons in one downloadable report.
- Year-by-year repayment summary
- Principal vs interest analysis
- Interest-rate comparison
- Tenure comparison
- Key observations
- Downloadable PDF
One-time report price: ₹199. You see a free preview before paying. The calculator above stays free to use.
How car loan EMI is calculated
A car loan is an ordinary amortising loan — fixed payments that cover the month's interest and pay down part of the balance — but the amount you borrow is assembled from several numbers, and that is where comparisons go wrong:
Once the amount financed is known, the monthly payment uses the same standard formula as any instalment loan:
At a 0% rate the formula divides by zero, so the calculator uses L ÷ n instead.
Key terms
- Vehicle price — the on-road price you are financing from.
- Down payment and trade-in — what you pay upfront and the value of a car you hand over; both reduce the loan.
- Loan amount (amount financed) — price − down payment − trade-in + any fees added to the loan.
- Interest rate — the annual reducing-balance rate, applied monthly (annual rate ÷ 12). A flat rate is not the same thing.
- Tenure — the number of monthly payments.
- EMI — the fixed monthly payment; total interest is EMI × months − loan amount, and the total repayment is EMI × months.
Example: an ₹8,00,000 car with 20% down
Assumptions: 9% a year, 60 monthly payments, no trade-in and no fees financed. A lender’s own figure can differ slightly.
The calculator opens with a ₹8,00,000 car, ₹1,60,000 down (20%), no trade-in and no financed fees, at 9% a year over 60 months. The amount financed is ₹6,40,000 and the monthly rate is 0.09 ÷ 12 = 0.0075.
| Year | Interest paid | Principal repaid | Balance left |
|---|---|---|---|
| 1 | ₹53,292.95 | ₹1,06,131.21 | ₹5,33,868.79 |
| 2 | ₹43,337.11 | ₹1,16,087.05 | ₹4,17,781.73 |
| 3 | ₹32,447.35 | ₹1,26,976.82 | ₹2,90,804.91 |
| 4 | ₹20,536.05 | ₹1,38,888.12 | ₹1,51,916.79 |
| 5 | ₹7,507.38 | ₹1,51,916.79 | ₹0.00 |
Total interest is ₹1,57,120.84, so the car costs ₹9,57,120.84 in all — the down payment plus ₹7,97,120.84 of loan payments. Notice that a third of all the interest is paid in the first year, because interest is charged on the balance and the balance is highest at the start.
Factors that affect car loan EMI
Your EMI depends on the vehicle price, the down payment (and any trade-in), which together set the loan amount, the interest rate and the tenure. The tables use the example above and change one input at a time.
Down payment
| Down payment | Loan amount | Monthly EMI | Total interest |
|---|---|---|---|
| 10% (₹80,000.00) | ₹7,20,000.00 | ₹14,946.02 | ₹1,76,760.95 |
| 20% (₹1,60,000.00) | ₹6,40,000.00 | ₹13,285.35 | ₹1,57,120.84 |
| 30% (₹2,40,000.00) | ₹5,60,000.00 | ₹11,624.68 | ₹1,37,480.74 |
Loan tenure: lower EMI, more interest
| Tenure | Monthly EMI | Total interest | Total repayment |
|---|---|---|---|
| 36 months | ₹20,351.83 | ₹92,665.84 | ₹7,32,665.84 |
| 48 months | ₹15,926.43 | ₹1,24,468.50 | ₹7,64,468.50 |
| 60 months | ₹13,285.35 | ₹1,57,120.84 | ₹7,97,120.84 |
| 72 months | ₹11,536.34 | ₹1,90,616.75 | ₹8,30,616.75 |
| 84 months | ₹10,297.01 | ₹2,24,948.85 | ₹8,64,948.85 |
A longer tenure lowers each payment but you pay interest for longer, so the total interest rises.
Interest rate
| Interest rate | Monthly EMI | Total interest |
|---|---|---|
| 8% | ₹12,976.89 | ₹1,38,613.54 |
| 9% | ₹13,285.35 | ₹1,57,120.84 |
| 10% | ₹13,598.11 | ₹1,75,886.52 |
| 11% | ₹13,915.15 | ₹1,94,909.05 |
Three things this calculator makes visible
1. Financed fees cost interest too
A fee rolled into the loan is not just the fee: you pay interest on it for the whole term. On the example terms, every ₹10,000 of fees added to the loan raises the payment by about ₹207.58 a month and costs roughly ₹2,455 in extra interest over five years. Paying fees upfront, where you can, avoids that.
2. A longer term lowers the payment and raises the cost
Stretch the same ₹6,40,000 to 84 months at 9% and the payment falls to about ₹10,297 — but total interest rises to about ₹2,24,949, some ₹67,800 more. The total cost line is the one to compare between offers, not the monthly figure. Try both terms above.
3. Owing more than the car is worth
Cars usually lose value fastest in their early years, while the loan balance falls slowest at the start. With a small down payment, the balance can exceed what the car would sell for — a problem if it is written off or you need to sell early. The “share of price financed” figure and the year-by-year balance show how exposed you would be; this calculator does not estimate depreciation, because that depends on the vehicle and market.
Related calculators and guides
- Already know the loan amount? The EMI calculator works for any fixed-rate loan — home, personal or vehicle — starting from the amount borrowed.
- Quoted a flat rate? The simple interest calculator shows how flat-rate interest is worked out, and our guide to APR, interest rates and flat rates converts between them.
- Saving for the car instead? The savings goal calculator works out the monthly saving for a target price, and the compound interest calculator shows how savings grow meanwhile.
Car finance in different countries
The loan this calculator models goes by different names: an auto loan in the US and Canada, a car loan in India and Australia, and in the UK often hire purchase (HP) when it is arranged through the dealer. All of them are repaid in equal monthly instalments, which is what the formula above calculates.
Some common products work differently and are not modelled here. A UK personal contract purchase (PCP), and similar balloon or guaranteed-future-value plans elsewhere, leave a large final payment at the end, which keeps the monthly figure lower than an equal-instalment loan for the same car. A lease is a rental, not a loan, so you do not own the car at the end. If you are offered one of these, compare the total of every payment, including the final one, rather than the monthly figure alone.
How rates are quoted, which fees and taxes apply, and the rules on dealer finance vary by country and by lender. Many countries require an APR, which includes certain fees and is usually higher than the interest rate used to calculate the payment — enter the interest rate here to reproduce a lender’s quote, and use the APR to compare offers.
Questions to ask a lender or dealer
- Is the quoted rate the annual interest rate, or a flat rate? A flat rate charges interest on the original amount for the whole term and costs noticeably more than the same number quoted as a reducing-balance rate.
- Which fees are added to the loan, and can any be paid upfront instead?
- Is there a balloon or final payment? If so, this calculator will not match — the monthly figure will look lower than it really is.
- Is insurance or an extended warranty bundled into the amount financed?
- What does early repayment cost?
- Is the rate fixed for the whole term?
Assumptions and limitations
- Fixed interest rate, equal monthly payments, interest calculated monthly on the reducing balance.
- No balloon payment, deferred first payment or payment holiday.
- No taxes, registration or insurance unless you include them in the fees field.
- Lenders may round payments or count days differently, so the exact figure can differ slightly.
Car loan questions, answered
How is car loan EMI calculated?
First the loan amount is worked out: price − down payment − trade-in + any fees added to the loan. The EMI is then L × i × (1 + i)^n / ((1 + i)^n − 1), where L is the loan amount, i the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. For an ₹8,00,000 car with ₹1,60,000 down at 9% over 60 months, that is ₹13,285.35 a month.
Does a larger down payment reduce EMI?
Yes. Every rupee paid upfront is a rupee you do not borrow, so both the EMI and the total interest fall in proportion. In the example, raising the down payment from 20% to 30% lowers the EMI from ₹13,285.35 to ₹11,624.68 and saves ₹19,640.11 of interest.
Can this calculator compare different loan scenarios?
Yes. Change one input at a time — down payment, rate, tenure or fees — and compare the monthly payment, total interest and total cost lines. Comparing the total cost, not just the EMI, shows which offer is cheaper overall.
How is this different from the EMI calculator?
The instalment formula is the same. This calculator works out the amount you actually borrow from the vehicle price, down payment, trade-in and any financed fees, and reports the total cost of the car rather than just the loan. The EMI calculator is simpler when you already know the loan amount.
What is the difference between a flat rate and a reducing-balance rate?
A reducing-balance rate charges interest only on what you still owe, so the interest portion of each payment shrinks over time. This calculator uses that method. A flat rate charges interest on the original loan amount for every year of the term, even as you repay it, so the same headline number costs considerably more. If a quote uses a flat rate, ask for the equivalent annual reducing-balance rate before comparing it.
Does a longer tenure reduce EMI but increase total interest?
A longer term lowers the monthly payment but increases total interest, and it lengthens the period in which you may owe more than the car is worth. On the default example, moving from 60 to 84 months cuts the payment by about ₹2,988 but adds roughly ₹67,800 in interest. Whether that trade makes sense depends on your budget; the calculator lets you see both numbers.
Does the calculator include insurance, tax or registration?
Only if you add them to the fees field, and only if they are actually financed. Costs you pay upfront or separately do not change the loan, so leave them out.
Is my data sent anywhere?
The calculation runs entirely in your browser using JavaScript on this page; the figures you type are not sent to our server, stored, or saved between visits. Only if you choose to open the detailed report are the price, down payment, trade-in, fees, rate, term and the display currency sent to our server, so that the report can be calculated there. If you buy a report, payment is handled by Razorpay and those figures are kept with the order so you can open the report again. No name, email address or phone number is asked for.