Car Loan Calculator
Calculate EMI for car loans.
Input & results
Input values
Results
Enter values to see instant results.
Calculation History
- Your calculations will appear here.
Recent calculations are saved automatically as you adjust inputs.
Financial results are estimates for informational purposes only and are not financial, tax, or investment advice. Verify figures with a qualified professional before making decisions. See our full disclaimer.
What is Car Loan?
A car loan EMI is the fixed monthly payment on vehicle finance from a bank, NBFC, or dealer. Car loans usually have shorter tenures (3–7 years) than home loans. Use this calculator to see whether a new or used car fits your monthly budget before signing a loan agreement.
A car loan is a secured loan for purchasing a new or used vehicle, usually repaid over 3 to 7 years. Each EMI repays interest and principal on a reducing balance. Because cars depreciate, the loan structure and tenure significantly affect the true cost of ownership, which this calculator makes clear.
Why is it used?
Estimating the EMI before visiting a dealership helps you set a realistic budget, compare dealer finance against bank loans on the effective rate, and see the total interest cost rather than just the monthly figure.
Who should use it?
New and used car buyers comparing financing options, and anyone deciding between a shorter tenure and a lower monthly payment.
How it works
- Enter on-road loan amount, annual interest rate, and tenure in months.
- The calculator computes fixed monthly EMI using standard auto-loan amortization.
- Compare total interest across different tenures — longer loans cost more overall.
Formula
Variable definitions
| Variable | Meaning |
|---|---|
| P | Car loan amount |
| R | Monthly interest rate = annual rate ÷ 12 ÷ 100 |
| N | Tenure in months |
| EMI | Fixed monthly installment |
How the formula works
- Determine the loan amount after any down payment.
- Convert the annual rate to a monthly rate R.
- Set N to the tenure in months.
- Apply the EMI formula; total interest = (EMI × N) − P.
Example calculation
₹8,00,000 car loan at 10% for 5 years (60 months).
| Input | Value |
|---|---|
| Principal | ₹8,00,000 |
| Annual rate | 10% |
| Tenure | 60 months |
- R = 0.008333, N = 60
- EMI ≈ ₹16,998
Result
More examples
Same loan over 3 years (36 months).
| Input | Value |
|---|---|
| Principal | ₹8,00,000 |
| Rate | 10% |
| Tenure | 36 months |
- N = 36
- EMI ≈ ₹25,814
Result
Methodology
- Gather Loan Amount, Annual Interest Rate (%), Tenure (months) from your documents or estimates.
- Enter each value in the matching field; units must match the labels.
- The calculator applies the Car Loan formula and updates results in real time.
- Compare scenarios by changing one input at a time.
Benefits
- Quick affordability check before visiting a dealership.
- Compare dealer zero-EMI schemes vs bank loans using the effective rate.
- See total cost of financing, not just the sticker price.
Use cases
- New car purchase with bank or captive finance.
- Used car loans from NBFCs with higher rates.
- Deciding between shorter tenure (less interest) vs lower EMI.
Tips & important notes
- Dealer 'low EMI' offers may hide processing fees or balloon payments — read the fine print.
- Insurance and road tax are often separate from the loan principal.
- Shorter tenure is usually better for depreciating assets like cars.
Common mistakes
- Overlooking processing fees hidden in low-EMI dealer schemes.
- Ignoring that insurance and road tax are separate from the loan.
- Picking a long tenure on a fast-depreciating asset.
Related concepts
- Reducing-balance vs flat interest rates
- Vehicle depreciation
- Down payment and loan-to-value
Good to know