Car Loan EMI Calculator
Check the monthly cost of a car before you visit the showroom. Enter the amount you will borrow.
Your loan
Your monthly EMI
₹8 lakh · 5 years · 8.25% p.a.
- Principal₹8,00,000
- Interest₹1,79,020
- Total amount payable
- ₹9,79,020
We'll carry ₹8 lakh over 5 years into the form.
Example: For a loan of ₹8,00,000 at 8.25% p.a. for 5 years, the EMI is ₹16,317 and the total amount payable is ₹9,79,020 (interest ₹1,79,020), excluding processing fee and taxes.
How your balance comes down
Early payments are mostly interest. The principal falls faster in the later years.
- Outstanding principal
- Interest paid so far
Year-wise repayment schedule
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | ₹1,34,826 | ₹60,978 | ₹6,65,174 |
| 2 | ₹1,46,381 | ₹49,424 | ₹5,18,793 |
| 3 | ₹1,58,923 | ₹36,880 | ₹3,59,870 |
| 4 | ₹1,72,542 | ₹23,262 | ₹1,87,328 |
| 5 | ₹1,87,328 | ₹8,476 | ₹0 |
Monthly EMI ₹16,317. Total interest ₹1,79,020. Total payable ₹9,79,020.
What is a car loan EMI?
EMI stands for equated monthly instalment: the fixed amount you pay your lender on the same date each month until the loan is repaid. Each EMI covers that month's interest and part of the loan itself.
A car loan is secured by the car itself. You normally pay a down payment and finance the rest, so enter only the amount you will borrow, not the car's price. The calculator opens at the lowest rate we currently list, 8.25% p.a. Yours may be higher.
How the EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P is the loan amount.
- r is the monthly interest rate: the yearly rate ÷ 12 ÷ 100.
- n is the number of monthly instalments.
A worked example
- P = ₹8,00,000
- r = 8.25 ÷ 12 ÷ 100 = 0.006875
- n = 60 instalments (5 years)
Example: For a loan of ₹8,00,000 at 8.25% p.a. for 5 years, the EMI is ₹16,317 and the total amount payable is ₹9,79,020 (interest ₹1,79,020), excluding processing fee and taxes.
How to lower your EMI
Choose a longer tenure
Stretching ₹8 lakh from 5 years to 7 years lowers the EMI from ₹16,317 to ₹12,569 a month. The cost is ₹76,763 more in interest over the loan.
Prepay when you can
A lump sum cuts the balance that interest is charged on. You can keep the EMI and finish sooner, or keep the end date and pay less each month.
Try the prepayment calculatorLook for a lower rate
On the same loan, a rate half a percentage point lower (7.75% p.a.) saves ₹11,486 in interest over 5 years. Comparing lenders is how you find it.
Borrow a little less
Every ₹1 lakh you borrow adds about ₹2,040 to the monthly EMI at these terms. A larger down payment or a smaller loan lowers it directly.
The same loan over different tenures
A longer tenure lowers the EMI and raises the interest. Here is the loan the calculator opens with, over three tenures.
| Tenure | Monthly EMI | Total interest | Total payable |
|---|---|---|---|
| 36 months | ₹25,161 | ₹1,05,813 | ₹9,05,813 |
| 5 years | ₹16,317 | ₹1,79,020 | ₹9,79,020 |
| 7 years | ₹12,569 | ₹2,55,783 | ₹10,55,783 |
We are here to answer
all your questions
Equated monthly instalment. It is the fixed amount you pay your lender each month. Part of it is interest and the rest repays the loan, and the interest share shrinks as the balance falls.
The loan amount. Lenders usually finance a share of the car's price and you pay the rest up front, so enter what you will borrow after your down payment.
Not unless you add them to the loan. Some lenders finance them, which raises the loan amount and the interest. Ask what is included in the amount you would borrow.
A longer tenure lowers the EMI but raises the total interest, and a car loses value faster than a house. Many buyers choose a shorter tenure than the maximum. The tenure table on this page shows the difference.
Usually, yes, although some lenders charge a foreclosure fee. Read your Key Fact Statement before you pay.
No. The calculator shows the EMI on the loan amount alone. Processing fees, GST and any insurance are charged separately, or added to the loan if you choose to finance them. Your lender's Key Fact Statement lists every charge.
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