Car Loan EMI Calculator
Estimate the EMI for a new or used car loan from the on-road price and your down payment.
What is the Car Loan EMI Calculator?
A car loan finances part of a vehicle’s on-road price (ex-showroom price plus registration, insurance and other charges). Lenders commonly fund 80–100% of the ex-showroom price for 1–7 years.
How does it work?
Loan amount = on-road price − down payment. The EMI is then calculated with the reducing-balance formula, and the total cost of the car adds the down payment to all EMIs.
Formula
Loan = On-road price − Down payment
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Example
A ₹10,00,000 car with ₹2,00,000 down payment, 9% for 5 years: loan ₹8,00,000, EMI ≈ ₹16,607, total interest ≈ ₹1,96,420.
Frequently asked questions
How much down payment should I make?
A down payment of at least 20% keeps the EMI and interest manageable. A common rule of thumb is to keep the car EMI below 10–15% of monthly income.
Is a longer car loan a good idea?
Cars depreciate quickly. A long tenure means you may owe more than the car is worth for several years, so shorter tenures are usually better.
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