About this car loan
Car loans are shorter than home loans, so each extra year of tenure has a big effect on the interest. The calculator opens with ₹8 lakh at 9.5% for 5 years. Try 4 and 7 years to see how the EMI drops and the total cost rises.
The figures use the reducing-balance method banks follow: interest each month is charged on what you still owe. Nothing you enter leaves your browser. Your own bank’s EMI can differ slightly because of rounding, the date of the first EMI and fees, so confirm it on the sanction letter.
How to use it
- The calculator is open with ₹8,00,000 at 9.5% for 5 years. Change the amount, rate or tenure.
- Read the monthly EMI, the total interest and the total amount payable.
- Open "Part-prepayment" to see how an extra payment shortens the loan and saves interest.
- Scroll to the schedule for each year, and download it as a PDF or CSV.
Example: ₹8,00,000 at 9.5% for 5 years
Loan ₹8,00,000 · 9.5% a year · 5 years
EMI ₹16,801 Total interest ₹2,08,089 Total payable ₹10,08,089
Monthly EMI on ₹8,00,000 by rate and tenure
| Rate \ Years | 3 yrs | 4 yrs | 5 yrs | 6 yrs | 7 yrs |
|---|---|---|---|---|---|
| 8.5% | ₹25,254 | ₹19,719 | ₹16,413 | ₹14,223 | ₹12,669 |
| 9% | ₹25,440 | ₹19,908 | ₹16,607 | ₹14,420 | ₹12,871 |
| 9.5% | ₹25,626 | ₹20,099 | ₹16,801 | ₹14,620 | ₹13,075 |
| 10% | ₹25,814 | ₹20,290 | ₹16,998 | ₹14,821 | ₹13,281 |
| 11% | ₹26,191 | ₹20,676 | ₹17,394 | ₹15,227 | ₹13,698 |
Worked out with the same formula as the calculator. Longer tenures lower the EMI but raise the total interest.
Features
- Accurate. The reducing-balance formula used by Indian banks.
- Prepayment planner. See the interest and time saved by a one-time or yearly extra payment.
- Full schedule. Year by year, expandable to every month, with PDF and CSV downloads.
- Private. No sign-up, and your numbers stay on your device.
Frequently asked questions
What down payment should I make on a car?
Many buyers pay 15–25% of the price up front. A larger down payment lowers the EMI and the total interest, and leaves less chance of owing more than the car is worth.
How is the car loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. See the guide "How to calculate EMI" for a worked example.
Does the EMI include processing fees and insurance?
No. It covers principal and interest only. Fees, insurance and taxes on them are extra, so check the sanction letter.
How can I reduce the interest I pay?
Car loans are short, so the tenure matters a lot: going from 7 years to 5 years raises the EMI but saves a large share of the interest. A bigger down payment lowers the loan amount and the EMI directly. Check the foreclosure charges before you plan to prepay.
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