finance
EMI Calculator
Calculate your monthly car loan EMI and total interest instantly in India. Free online car loan calculator. No signup required.
Car Loan Calculator
Car Loan EMI Calculator — Monthly Payment & Interest
Plan your car purchase with exact EMI and interest details.
Car Price (₹)
Down Payment (₹)
Interest Rate (%)
Loan Tenure (Years)
Monthly EMI
₹ 24,910
Loan Amount₹ 12,00,000
Total Interest₹ 2,94,602
Total Payable₹ 17,94,602
Principal
Interest
Disclaimer
The calculations provided by this tool are for informational and educational purposes only and do not constitute professional financial advice. While we strive to ensure accuracy, actual returns, tax liabilities, or loan terms may vary based on market conditions, institution policies, and regulatory changes. Please consult a qualified financial advisor before making any significant financial decisions.
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Quick Start Instructions
Enter on-road price, down payment, interest rate, and tenure to get monthly car loan EMI. Rates from 9% p.a. Includes a full amortization schedule. No signup.
- 1Enter car on-road price minus down payment to get the loan amount.
- 2Set interest rate — SBI car loans start around 9% per annum.
- 3Choose loan tenure — 5 years is the most common balance of EMI vs. interest.
- 4View monthly EMI, total interest, and total car cost — compare tenures instantly.
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Frequently Asked Questions
How is car loan EMI calculated?
Car loan EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is loan amount (car price minus down payment), r is monthly interest rate, and n is number of months.
Does the car loan calculator show total interest paid over the tenure?
Yes, it computes and displays the exact total interest amount and the total payment (principal + interest) alongside your monthly EMI.
What is the typical car loan interest rate in India?
Car loan interest rates in India range from 8.5% to 15% per annum. Public sector banks typically offer lower rates (8.5–10%) compared to private banks and NBFCs.
How much down payment should I make on a car loan?
A 20–30% down payment is recommended. Higher down payment means lower loan amount, lower EMI, and lower total interest paid over the tenure.
What is the maximum tenure for a car loan in India?
Most banks offer car loans for up to 7 years. Longer tenures mean lower EMI but higher total interest. 5 years is the most common tenure.
Detailed Guide & Overview
Understanding Car Loan EMI in India
A car loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your vehicle loan. It consists of two components: the principal repayment (the loan amount being paid back) and the interest charge. In the early months of a car loan, the interest component is higher and the principal component is lower. As you progress through the loan tenure, this ratio reverses. Our Car Loan EMI Calculator uses the standard reducing balance method to calculate your monthly payment accurately.
Car Loan EMI Formula
The EMI is calculated using the formula: EMI = P × r × (1 + r)^n / [(1 + r)^n – 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months. For example, a ₹7 lakh car loan at 9% per annum for 5 years gives a monthly EMI of approximately ₹14,530, with a total interest payment of ₹1.72 lakhs over the loan tenure.
Car Loan Interest Rates in India (2025)
Car loan interest rates in India vary by lender, loan amount, tenure, and your credit score:
- SBI Car Loan: Starting from 8.65% per annum for new cars
- HDFC Bank: Starting from 8.75% per annum
- ICICI Bank: Starting from 8.75% per annum
- Bank of Baroda: Starting from 8.70% per annum
- Used Car Loans: Typically 1.5–3% higher than new car loan rates
Borrowers with a CIBIL score above 750 typically qualify for the lowest advertised rates. A score below 650 may result in rejection or significantly higher interest rates.
How to Reduce Your Car Loan EMI
- Make a higher down payment: Most lenders finance 80–90% of the on-road price. Paying 30–40% as a down payment reduces your loan amount and thus your EMI.
- Choose a longer tenure: Extending tenure from 5 to 7 years reduces the monthly EMI but significantly increases total interest paid.
- Negotiate the interest rate: If you have a strong credit history and existing relationship with the bank, negotiate for a lower rate before signing.
- Make partial prepayments: Most banks allow prepayment with minimal or no penalty. Even one extra payment per year significantly reduces the total tenure.
New Car vs Used Car Loan: What to Know
New car loans are available for up to 7 years, while used car loans are typically capped at 5 years and carry higher interest rates. For used cars, lenders also consider the vehicle age — most banks will not finance cars older than 5–7 years at the time of loan application. Always compare the total cost of ownership (EMI × tenure + down payment) rather than just the monthly EMI when making your purchase decision.