Car Loan EMI Calculator

Monthly EMI

₹ 0

Total Interest

₹ 0

Total Payment

₹ 0

Principle Amount

Interest

Car Loan Calculator

A Car Loan helps you buy a new or used car by borrowing money from a bank or lender. You repay the loan through Equated Monthly Installments (EMIs), which include both the principal and interest.

A Car Loan Calculator quickly shows you the EMI you need to pay based on:

  • Loan amount (car price minus down payment)
  • Interest rate charged by the bank
  • Loan tenure (usually 1–7 years)

This helps you plan your budget before applying for a loan and compare offers from different lenders.

How Car Loan EMI Works

The EMI is a fixed monthly payment that reduces your outstanding loan balance over time. Early EMIs have a higher interest component, while later EMIs cover more principal.

Formula:

EMI = [P × r × (1+r)^n] / [(1+r)^n – 1]

  • P = Loan amount
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Loan tenure in months

Example: A ₹5,00,000 car loan at 9% annual interest for 5 years gives an EMI of about ₹10,380.

Benefits of Using a Car Loan Calculator

  • Quick estimates: Instantly know your EMI before applying.
  • Better planning: Adjust loan amount, tenure, or rate to fit your budget.
  • Compare lenders: Check different offers easily.
  • Affordable decisions: Avoid borrowing more than you can repay.

Factors Affecting Car Loan EMI

  • Loan Amount: Higher loan = higher EMI.
  • Interest Rate: Even a small change impacts EMI.
  • Tenure: Longer tenure = lower EMI but more total interest.
  • Down Payment: Higher down payment reduces loan burden.
  • Processing Fees: Some lenders add extra charges.

Pros & Cons of Car Loan

  • Own a car without full upfront payment.
  • Flexible tenure options (1–7 years).
  • Builds your credit history if repaid on time.
  • Easy to compare offers with calculators.
  • Interest increases overall car cost.
  • Missed EMIs hurt your credit score.
  • Extra charges like processing fees & penalties.
  • Car value depreciates faster than loan repayment.

Conclusion

A Car Loan Calculator is a simple tool to check your EMI before applying. It helps you choose the right loan amount, compare offers, and manage your budget smartly so that you can enjoy your car without financial stress.