How to use the car loan emi calculator
- Enter the loan amount. The page starts with ₹8,00,000.
- Enter the interest rate per year. The page starts with 9.5 percent, an illustrative figure you should replace with your offer.
- Enter the tenure in years. The page starts with 5.
- Read the monthly EMI, total interest and total payment, then scroll the schedule or use Download CSV.
About this scenario
A car loan is shorter than a home loan, usually 3 to 7 years, and the car itself is the security. Rates are often higher than for home loans. Rates of roughly 8 to 12 percent are a common ballpark in many markets, but that is illustrative, so use your lender quote.
Worked example
The page opens with a loan of 8 lakh at 9.5 percent a year for 5 years. The EMI is ₹16,801 a month. Over 60 payments you repay ₹10,08,089, which means ₹2,08,089 goes to interest, or 20.6 percent of the total.
The first table keeps the rate at 9.5 percent and varies the tenure. The second keeps the tenure at 5 years and varies the rate.
| Tenure | EMI | Total interest | Total payment |
|---|---|---|---|
| 3 years | ₹25,626 | ₹1,22,549 | ₹9,22,549 |
| 4 years | ₹20,099 | ₹1,64,728 | ₹9,64,728 |
| 5 years | ₹16,801 | ₹2,08,089 | ₹10,08,089 |
| 7 years | ₹13,075 | ₹2,98,316 | ₹10,98,316 |
| Rate | EMI over 5 years | Total interest |
|---|---|---|
| 8.5% | ₹16,413 | ₹1,84,794 |
| 9.5% | ₹16,801 | ₹2,08,089 |
| 10.5% | ₹17,195 | ₹2,31,707 |
What to notice
Because the term is short, interest is a smaller share than on a home loan. Shortening it to 3 years pushes the EMI up to ₹25,626 but trims interest to ₹1,22,549. A rate one point higher, 10.5 percent, makes the 5 year EMI ₹17,195. Compare that rise with what a bigger down payment would save.
Tips
- A larger down payment lowers the loan amount and the EMI more reliably than negotiating a rate.
- Check whether the loan charges interest on the reducing balance, as this calculator assumes, or a flat rate. A flat rate costs more than it looks.
- Remember running costs: insurance, fuel and servicing are on top of the EMI.
- See also: emi calculator for home loan, emi calculator for personal loan, emi calculator, percentage calculator.
Estimates only, not financial advice. Everything runs in your browser. Nothing you type is uploaded.