How to use the Car Loan EMI Calculator
- 1. Enter the priceType the on-road price and the down payment you plan to make.
- 2. Add the loan termsEnter the rate and tenure from the lender's offer.
- 3. Compare optionsChange the down payment or tenure and see the EMI and interest move.
How the car loan EMI is worked out
The loan is the on-road price minus your down payment. The EMI then follows the usual formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n is the number of months.
Take a car costing ₹10,00,000 with a ₹2,00,000 down payment. The loan is ₹8,00,000. At 9.5% for 5 years the EMI is ₹16,801. You pay ₹2,08,089 in interest, so the car costs you ₹12,08,089 in total, not ₹10,00,000.
That total is the number to look at. A longer tenure lowers the EMI but raises the interest. Try 5 years and then 7 years in the calculator to see the difference for your own loan.
What to check before you sign
- On-road or ex-showroom. Loans may be based on either. Insurance, road tax and registration add up, so ask what the lender finances.
- Fixed or reducing rate. Some dealers quote a flat rate, which looks lower than a reducing rate but costs more. Ask for the reducing rate and enter that here.
- Foreclosure charges. Fixed-rate car loans often charge a fee for closing early. Read the terms before using the extra payment box.
- Other costs. Fuel, insurance and service continue after the loan, so keep room in your monthly budget.
A car loses value over time while the loan keeps charging interest, so a higher down payment often makes sense. Saving for that down payment? Try the FD calculator. Compare other borrowing with the personal loan EMI calculator or the home loan EMI calculator.
Frequently asked questions
Should I enter the on-road price?
Yes, if that is what you will pay. If your lender only funds the ex-showroom price, enter that as the price and keep the rest of the cost in mind separately.
What if my down payment equals the price?
Then there is no loan, and the tool tells you so rather than showing an EMI.
Does this work for a used car?
Yes. The maths is the same. Just use the rate your lender offers for a used car, as it can differ from a new car rate.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.