Car financing
Work out your monthly car payment and the total cost of your loan.
Monthly payment
₹13,075
over 84 months
Reducing-balance EMI. Your lender's figure may differ slightly due to processing fees, rounding, or day-count conventions.
A car loan EMI calculator computes your monthly instalment by dividing the total loan amount (principal + interest) into equal payments over your chosen loan tenure. It uses the standard amortisation formula to show what you actually owe each month, factoring in the interest rate charged by your lender.
The calculator uses the EMI formula to spread your loan across monthly payments. You input the principal loan amount (what you borrow), annual interest rate (as %), and loan tenure in months. The tool calculates the exact monthly payment you must make, then multiplies by the number of months to show total repayment and total interest paid. Most car loans use reducing-balance interest, where interest decreases as principal is paid down.
EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1]P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 100 ÷ 12), and N is the total number of monthly payments. The formula ensures each payment is identical and covers both principal and interest proportionally.
| Input | Result | Notes |
|---|---|---|
| Loan: ₹10,00,000 (10 lakh), Rate: 8% p.a., Tenure: 60 months (5 years) | EMI: ₹20,276, Total Interest: ₹2,16,560, Total Repayment: ₹12,16,560 | Typical car loan for a mid-range sedan with bank financing |
| Loan: ₹25,00,000 (25 lakh), Rate: 7.5% p.a., Tenure: 84 months (7 years) | EMI: ₹41,662, Total Interest: ₹1,99,608, Total Repayment: ₹26,99,608 | Premium SUV with longer tenure to keep monthly payment manageable |
| Loan: ₹5,00,000 (5 lakh), Rate: 9% p.a., Tenure: 36 months (3 years) | EMI: ₹15,838, Total Interest: ₹69,168, Total Repayment: ₹5,69,168 | Budget car with shorter tenure and higher interest rate (higher risk) |
EMI is a fixed monthly payment that includes both principal and interest. Interest-only means you pay only interest each month and repay the full principal at the end—risky for car loans because you owe the full amount on day one of repayment.
Not easily. Your EMI is locked into the loan contract based on principal, rate, and tenure. You can prepay principal to reduce future interest and shorten the loan, or refinance (take a new loan) if rates drop, but you cannot simply adjust the EMI.
Longer tenure spreads the same principal over more months, lowering your monthly payment but increasing total interest paid. A 7-year loan has a lower EMI than a 5-year loan on the same principal, but you pay more interest overall.
This tool calculates fixed-rate EMI. If your loan has a floating rate that changes every 1–3 years, your EMI will adjust at each reset. Use this calculator to estimate your current EMI; contact your bank for future rate scenarios.
Calculate your standard EMI with the full tenure, then contact your bank about prepayment. Most banks allow penalty-free prepayment; your bank will recalculate the remaining EMI and tenure based on the reduced principal.
Most banks require 15–30% down payment on a car. A larger down payment reduces the loan amount and thus your EMI and total interest. Use this calculator to see how a ₹2 lakh vs. ₹5 lakh down payment affects your monthly payment.