Car Loan Calculator
Monthly EMI and total cost for a car loan.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the car loan amount (on-road price minus down payment), r is the monthly interest rate, and n is tenure in months. Car loans typically run 3–7 years with shorter tenures than home loans, which keeps total interest lower but pushes up the monthly EMI.
Worked example
An ₹8,00,000 car loan at 8.5% over 5 years (60 months) works out to an EMI of about ₹16,413 — roughly ₹9.85 lakh repaid in total, including ₹1.85 lakh in interest. That's a much smaller interest burden than a 20-year home loan because the tenure is shorter.
Where this can give the wrong answer
- On-road price includes registration, insurance, and road tax — banks sometimes finance only the ex-showroom price, so confirm whether P is the disbursed loan or the full vehicle cost.
- Balloon payments and step-up EMIs offered by some NBFCs aren't modelled; this assumes equal monthly instalments for the full tenure.
- A 0% 'flat' dealer scheme may still carry processing fees or subvention charges that raise the effective APR above zero.
FAQ
- Longer tenure lowers EMI but raises total interest. On depreciating assets like cars, many buyers prefer a 3–5 year loan so they aren't paying interest on a vehicle worth far less than the outstanding balance.