Car Loan EMI Calculator

A car loan finances purchase of a new or used vehicle. The lender typically hypothecates the vehicle until the loan is closed. Tenures are shorter than home loans — often one to seven years — and interest rates sit between secured housing loans and unsecured personal loans for many borrowers.

Use this calculator to estimate monthly EMI, total interest and total repayment on the amount the lender will finance after your down payment.

EMI = [P × r × (1+r)ⁿ] / [(1+r)ⁿ − 1]

P = financed principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Most Indian auto loans use this reducing-balance method.

Worked example: ₹8,00,000 at 9.5% p.a. for 5 years (60 months) → EMI and total interest update live in the panel above. If a dealer quotes a flat rate, convert or ask for the reducing / effective rate before comparing.

Year-wise totals show how payments split between principal and interest and the closing balance after each year. Open the month-wise breakup when you need instalment-level detail for budgeting or prepayment planning.

Compare offers on the same financed amount, tenure and rate type (flat vs reducing). Check whether insurance or accessories are bundled into the loan — that raises principal and EMI. RBI transparency guidelines require clear disclosure of charges in the loan documents.

For most salaried individuals buying a personal car, EMI interest is not tax-deductible. Business or professional use may follow different rules under the Income Tax Act — confirm with a tax adviser.

Car loans are secured against the vehicle and usually cheaper than personal loans, but costlier and shorter than home loans. For a generic tool, see the EMI calculator.

Buyers comparing dealer finance vs bank offers, choosing between 3- and 5-year tenures, or checking whether a quoted auto loan EMI fits after fuel and insurance costs. Enter the disbursed amount and the rate on your sanction letter.