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Car Loan EMI Calculator

Calculate monthly EMI for a car loan. Pre-set with typical car loan defaults. See total interest and full payable amount.

On-road price minus down payment

Monthly EMI
₹16,607
Total Interest
₹1,96,401
Total Payable
₹9,96,401
Principal — 80.3%Interest — 19.7%

What is a car loan EMI calculator?

A car loan EMI calculator computes your monthly instalment, total interest payable, and the principal-to-interest split for a car loan. Default values are tuned to typical Indian car loans (5-year tenure, 9% rate); adjust based on your offer.

How much car can you afford?

Rule of thumb: total car loan EMI shouldn't exceed 15% of your monthly take-home (10% if you also have a home loan). For a ₹50,000/month take-home, that caps the EMI at ~₹7,500, which at 9% for 5 years buys you a car around ₹3.6 lakh. Beware of dealer up-sells beyond what your EMI ratio justifies.

New car vs used car loan

Used car loan rates are usually 1.5–3% higher than new car rates because of higher depreciation and resale risk for the lender. The math often still favors used — a 3-year-old car has shed ~40% of its value, so even at 12% you may pay less total interest than financing a new car at 9%.

Frequently asked questions

What is a car loan EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay each month towards a car loan. It includes both principal and interest, calculated using the standard reducing-balance EMI formula. EMI stays constant; the principal-to-interest ratio shifts toward principal over time.
What car loan rates do banks charge in India?
Major banks (SBI, HDFC, ICICI): 8.75–10.5%. Private banks (Axis, Kotak): 9–11%. NBFCs (Bajaj Finance, Mahindra Finance): 11–14%. Manufacturer-tied financiers (Maruti Suzuki Finance, Tata Capital): often promotional 7.99–9.5%. Rate depends on credit score, employer category, and down payment.
What car loan tenure should I pick?
3–5 years is the sweet spot. 7 years lowers EMI but you end up paying ~30% more total interest, plus the car may depreciate faster than you pay it off (negative equity). Match tenure to how long you'll keep the car — selling a car still under loan creates paperwork friction.
How much down payment for a car loan?
Banks finance up to 85–90% of on-road price. The remaining 10–15% is your down payment. Putting down 20%+ reduces interest cost meaningfully and improves loan approval odds. Avoid 'zero down payment' offers — they usually come with higher rates and fold registration into the loan, inflating interest.
Can I prepay a car loan?
Yes. RBI rules abolished prepayment penalties on floating-rate retail loans. Fixed-rate car loans may charge 2–4% prepayment fee. Even partial prepayments shave significant interest. Use any windfall (bonus, tax refund) to prepay and shorten the loan.

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