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FinancialUpdated 2026-06-14

Car Loan EMI Calculator

Calculate your car loan EMI instantly. Free auto loan calculator with amortization schedule for new and used car purchases.

Monthly EMI

₹9,321

EMI Calculator

Quick and accurate loan calculations for India

₹10,00,000
₹
9.5%
%
20 years
years

Monthly EMI

₹9,321

Total Interest

₹12,37,115

Total Amount

₹22,37,115

Principal vs Interest

EMI Tip: Prepayments

Making even one extra EMI payment every year can reduce your home loan tenure by several years and save lakhs in interest.

Loan EMI Components

Your Equated Monthly Installment (EMI) consists of two parts: the Principal amount and the Interest charged by the bank.

In the early years of your loan, a larger portion of your EMI goes towards interest. As you progress, the principal component increases.

The EMI Formula

E = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)
P: Principal Amount
r: Monthly Rate (R/12)
n: Months
E: Monthly EMI

Financial Tips

1
Choose Shorter Tenure

Reduces total interest paid, though monthly EMI will be higher.

2
Down Payment

A higher down payment reduces the loan amount and interest burden.

3
Prepayment

Partial prepayments directly reduce the principal and total tenure.

4
Check Credit Score

A score above 750 can help you negotiate lower interest rates.

OverviewHow It WorksFormulaExamplesBenefitsFAQRelated

What is Car Loan EMI?

A Car Loan EMI Calculator helps you estimate monthly payments for your vehicle loan. It considers the loan amount, interest rate, and tenure to calculate accurate EMIs.

How It Works

The calculator applies the standard EMI formula to compute monthly payments and shows the amortization schedule with principal and interest breakdown.

Formula & Calculation Method

E = P × r × (1+r)^n / ((1+r)^n - 1)

Where: E = EMI, P = Car loan amount, r = Monthly interest rate, n = Number of monthly installments

Examples

New Car Loan

1Monthly rate: 9/12/100 = 0.0075

2EMI = ₹20,758 per month

3Total payment: ₹12,45,480

4Total interest: ₹2,45,480

Monthly EMI: ₹20,758

Benefits

  • 1
    Budget for your car purchase
  • 2
    Compare different loan offers
  • 3
    Plan down payment amount
  • 4
    Choose optimal tenure
  • 5
    Understand total cost

Common Use Cases

Buying a new carUsed car purchase planningCar loan refinancingBudget comparison between modelsDealer financing evaluation

Expert Tips

  • 1
    Make a larger down payment to reduce EMI
  • 2
    Compare offers from banks and NBFCs
  • 3
    Check for prepayment penalties
  • 4
    Consider your total cost of ownership
  • 5
    Negotiate the interest rate with your bank

Common Mistakes to Avoid

  • !
    Focusing only on monthly EMI
  • !
    Not considering insurance and maintenance costs
  • !
    Ignoring processing fees
  • !
    Taking too long tenure for lower EMI
  • !
    Not checking credit score beforehand

Frequently Asked Questions

Find answers to common questions about this calculator below.

For a ₹10 lakh car loan at 9% interest for 5 years (60 months), the EMI is approximately ₹20,758 per month. The total interest paid would be ₹2,45,480.

Most banks in India offer car loan tenures up to 7 years (84 months) for new cars and up to 5 years (60 months) for used cars.

Car loan interest rates in India range from 8.5% to 14% depending on the lender, your credit score, and whether it is a new or used car. New car loans are typically 1-2% cheaper than used car loans.

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