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Car Loan EMI Calculator

Work out the EMI on a new or used car loan, see the total interest you'll pay, and find a tenure that fits — built for India's fixed-rate car loans.

₹8,00,000
9.50%
5 years

Monthly EMI

₹16,801.49

Principal
₹8,00,000
Total interest
₹2,08,089
Total of 60 payments
₹10,08,089
PrincipalInterest

New-car loan rates are typically fixed, commonly ~9–11% p.a.; used-car loans run higher. Figures are estimates — confirm exact terms with your lender.

How car loan EMI works

Your car loan principal is typically the on-road price minus your down payment. From there, the EMI is the standard reducing-balance instalment: 

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

Because new-car loans are fixed-rate, your r (monthly rate) doesn't change, so every EMI is identical and easy to budget. The only thing that varies month to month is the split between interest and principal.

A worked example

Borrow ₹8,00,000 at 9.5% over 5 years (60 months) and the EMI is about ₹16,801. Across the full term you repay roughly ₹10,08,089 — about ₹2,08,089 of it interest. In the first month, ₹6,333 of that EMI is interest and ₹10,468 reduces the principal; because car-loan tenures are short, principal repayment ramps up quickly compared with a home loan.

The depreciation angle

A car loses value the moment you drive it out, so stretching the tenure to shrink the EMI can leave you owing more than the car is worth — a problem if you sell or total it early. The amortization schedule above shows your falling balance month by month; aim for a tenure where that balance stays below the car's likely resale value.

Frequently asked questions

How is car loan EMI calculated?
The same reducing-balance way as any loan: EMI = P·r·(1+r)^n ÷ ((1+r)^n − 1). On a ₹8,00,000 car loan at 9.5% over 5 years (60 months), the EMI is about ₹16,801 and total interest is roughly ₹2,08,089. The loan amount is usually the on-road price minus your down payment.
Are car loan interest rates fixed or floating?
New-car loans in India are almost always fixed-rate, so your EMI stays the same for the whole tenure. That makes budgeting easy, but it also means the lender may charge a small foreclosure fee if you close the loan early — check the sanction letter.
What loan tenure should I pick for a car?
A car is a depreciating asset, so a very long tenure risks owing more than the car is worth. Most buyers choose 3–5 years. A longer tenure lowers the EMI but you pay more interest and stay 'underwater' for longer. Use the tenure slider to find the shortest term you can comfortably afford.
Does a larger down payment help?
Yes, in two ways. It directly lowers the principal — and therefore the EMI — and a lower loan-to-value can sometimes earn a slightly better interest rate. The trade-off is locking up cash that might be better kept as an emergency buffer.
Is a used-car loan more expensive?
Usually, yes. Used-car loans carry higher interest rates than new-car loans because the collateral is older and harder to value, and tenures are often shorter. Set the rate slider higher to model a used-car scenario.

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