CarCostKit

Car Loan EMI Calculator

Find out your monthly car loan EMI, total interest and the full amount you will repay. Change the price, down payment, rate or tenure and the results update instantly. You can copy the link to share your numbers.

Your monthly EMI

₹ 14,116

₹
1,00,0001,00,00,000
₹
020% of price8,50,000
%
5Example value, use your bank's rate20
Loan tenure
years
18

Your loan summary

Loan amount
₹ 6,80,000
Total interest
₹ 1,66,941
Total amount paid
₹ 8,46,941
  • Principal: 80.3%
  • Interest: 19.7%
Year-by-year repayment schedule
YearPrincipalInterestBalance
1₹ 1,12,764₹ 56,624₹ 5,67,236
2₹ 1,23,342₹ 46,046₹ 4,43,893
3₹ 1,34,913₹ 34,475₹ 3,08,980
4₹ 1,47,569₹ 21,820₹ 1,61,412
5₹ 1,61,412₹ 7,977₹ 0

How it's calculated

Loan amount = car price − down payment.

Monthly rate (r) = yearly interest rate ÷ 12 ÷ 100. For example, 9% a year is 0.0075 per month.

EMI = loan × r × (1 + r)n ÷ ((1 + r)n − 1), where n is the number of months.

Total amount paid = EMI × n, and total interest = total amount paid − loan amount.

Each month, interest is charged on the balance still owed. The rest of your EMI reduces the principal, so early EMIs are mostly interest and later ones mostly principal. The year-wise table shows this split.

Frequently asked questions

How is a car loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Interest is charged on the outstanding balance, which is how most Indian banks calculate it.

How much down payment should I make on a car?

Many buyers pay around 10–20% of the car price upfront, but it depends on your lender and budget. A larger down payment reduces the loan amount, your EMI and the total interest you pay. Remember that registration, insurance and other on-road costs may also need to be paid upfront.

Is a longer or shorter loan tenure better?

A longer tenure lowers your monthly EMI but increases the total interest you pay. A shorter tenure has a higher EMI but costs less overall. Try different tenures in the calculator to find a balance that fits your monthly budget.

What interest rate should I enter?

Car loan rates differ between banks and depend on your credit score, income, the car and the tenure. The rate pre-filled here is only an example value. Please check the current rate offered by your bank or NBFC and enter that for an accurate estimate.

Does this calculator include processing fees and other charges?

No. It estimates the EMI from price, down payment, rate and tenure only. Processing fees, foreclosure or part-prepayment charges, insurance bundled into the loan and GST on fees are not included, so your actual bank figures may differ slightly.

What is the difference between flat rate and reducing balance rate?

With a flat rate, interest is charged on the full original loan for the whole tenure, which makes the effective cost much higher. With a reducing balance rate, interest is charged only on what you still owe. This calculator uses the reducing balance method; ask your lender which one applies to you.

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